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Wednesday, 02 March 16
RE-EVALUATION OF MINING LICENSES CLEAN AND CLEAR STATUS IN INDONESIA
COALspot.com: In connection with the transfer of mining authority from Regents/Mayors to Governors1 and from Regents/Mayors and Governors to the Indonesian Minister of Energy and Mineral Resources ("MEMR")2 pursuant to the New Regional Government Law3, the MEMR is conducting another review of existing mining licenses (known as IUPs) previously issued by Regents/Mayors and Governors.
MEMR Regulation No. 43 of 2015 regarding Procedures for Evaluation of Issuance of Mineral and Coal Mining Business License ("MEMR 43/2015") sets forth the requirements for IUPs to be declared Clean and Clear ("CNC"), meaning they have been validly issued and conform to the requirements of the Mining Law. The requirements and consequences for failure to satisfy them are as follow:
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Requirements |
Consequence for Failure |
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application for renewal or upgrade of IUP must be submitted within its term of validity |
revocation of IUP |
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area reservation and KP (former form of IUP) application must be approved prior to the issuance of the Mining Law |
revocation of IUP |
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application for area reservation must not overlap with any active COW, CCOW, KP or IUP area for the same mining commodity |
revocation of IUP |
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Exploitation KP must derive from an upgraded Exploration KP |
revocation of IUP |
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except in the case of a public company, a company must not have more than one IUP |
(i) issuance of single IUP consolidating IUPs the areas of which are adjacent to each other, for the same mining commodity and in the same stage (exploration or production); or
(ii) transfer of IUPs to 51% owned subsidiary(-ies)
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IUP term of validity must not exceed the period prescribed under the Mining Law |
adjustment of IUP's term of validity |
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IUP area must not overlap with other IUP areas for the same mining commodity or National Reservation Area or other regency/city/province area |
(i) reduction of area reflecting partial overlap; or
(ii) revocation of IUP if the overlap covers the whole IUP area4
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Exploration IUP's coordinates must be in accordance with the area reservation |
(i) change of coordinates if there is partial non-conformance to the area reservation or Exploration IUP’s coordinates, as relevant; or
(ii) revocation of IUP if the entire IUP area does not conform to the area reservation or Exploration IUP’s coordinates
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Production Operation IUP's coordinates must be within the Exploration IUP's coordinates |
(i) change of coordinates if there is partial non-conformance to the area reservation or Exploration IUP’s coordinates, as relevant; or
(ii) revocation of IUP if the entire IUP area does not conform to the area reservation or Exploration IUP’s coordinates
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IUP's coordinates must be straight lines parallel to latitude and longitude |
adjustment of IUP's coordinates |
MEMR will only issue CNC Certificates to mining companies which have submitted the following documents:
1. exploration report and, if applicable, feasibility study report;
2. environmental documents, i.e. AMDAL or UKL-UPL; and
3. evidence of payment of dead rent and, if applicable, royalty.
Failure to submit the above documents may result in administrative sanctions in the form of written warnings, temporary suspension of mining activities or revocation of IUP.
By: Michael S. Carl & Florence G. Santoso
1(Applies to domestic mining companies having a mining area located within one province)
2(Applies to (i) domestic mining companies having a mining area located in more than one province and (ii) all foreign-owned mining companies)
3(Law No. 23 of 2014 regarding Regional Government, as lastly amended by Law No. 9 of 2015)
4(In the event of overlap between IUPs having the same mining commodity, first come, first served applies, based on the date of submission of application and satisfaction of all requirements.)
(This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user’s own risk)
About Michael S. Carl
Michael S. Carl is a foreign legal advisor at SSEK Legal Consultants, where he is a supervising advisor for the firm’s mining practice.
He specializes in mining, energy, infrastructure, finance, insolvency and restructurings, and M&A.
Michael is named by Who’s Who Legal as one of Indonesia’s leading mining lawyers and he has been recognized as a leading lawyer by Chambers Global, IFLR 1000 and Asialaw.
About Florence G. Santoso
Florence G. Santoso is experienced in energy, infrastructure, investment and mergers and acquisitions, and has been involved in a number of acquisitions involving industrial and trading companies.
Since joining SSEK Legal Consultants in 2010, Florence has been involved in numerous major mining transactions.
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Friday, 19 February 16
U.S. WEEKLY COAL PRODUCTION ROSE 2.6% FROM LAST WEEK - EIA
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 13.2 million shor ...
Thursday, 18 February 16
INDIA NEEDS INTERNATIONAL SUPPORT ON HIGH EFFICIENCY COAL - WORLD COAL ASSOCIATION
Speaking at a conference in New Delhi today, World Coal Association Chief Executive Benjamin Sporton said the critical role of coal in driving econ ...
Thursday, 18 February 16
CHINA COAL SECTOR - 2015 RESULTS BLEAK, 2016 UNLIKELY TO BE ANY BETTER - FITCH
COALspot.com: China Coal Sector’s Financial Woes to Worsen in 2016.
Fitch Ratings says that the 2015 full-year result previews issued by ...
Thursday, 18 February 16
PANAMAX RATES OUT OF ECSA WERE STILL GAINING A PREMIUM OVER THE REST OF THE MARKET - INTERMODAL
The BDI moved further down last week, fact that hardly took anyone by surprise as the lunar year holidays in Asia on top of the already depre ...
Wednesday, 17 February 16
TAP ON OPPORTUNITIES IN GROWING ELECTRICITY DEMAND AND NEW COAL POWER PROJECT DEVELOPMENTS IN THE PHILIPPINES - IBC
Tap on Opportunities in Growing Electricity Demand and New Coal Power Project Developments in the Philippines
Coal Power Generation 2016
19- ...
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- Global Coal Blending Company Limited - Australia
- McConnell Dowell - Australia
- Eastern Coal Council - USA
- Kalimantan Lumbung Energi - Indonesia
- Eastern Energy - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Chamber of Mines of South Africa
- Mercuria Energy - Indonesia
- Aditya Birla Group - India
- Edison Trading Spa - Italy
- Coastal Gujarat Power Limited - India
- Cement Manufacturers Association - India
- Anglo American - United Kingdom
- Independent Power Producers Association of India
- SN Aboitiz Power Inc, Philippines
- Borneo Indobara - Indonesia
- PowerSource Philippines DevCo
- Coalindo Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- SMC Global Power, Philippines
- VISA Power Limited - India
- Economic Council, Georgia
- Maheswari Brothers Coal Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Generating Authority of Thailand
- Madhucon Powers Ltd - India
- Semirara Mining and Power Corporation, Philippines
- ICICI Bank Limited - India
- PNOC Exploration Corporation - Philippines
- Tata Chemicals Ltd - India
- Meenaskhi Energy Private Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Electricity Regulatory Commission - India
- Mjunction Services Limited - India
- Central Java Power - Indonesia
- Kideco Jaya Agung - Indonesia
- The State Trading Corporation of India Ltd
- Iligan Light & Power Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Directorate Of Revenue Intelligence - India
- Kapuas Tunggal Persada - Indonesia
- Trasteel International SA, Italy
- OPG Power Generation Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Commonwealth Bank - Australia
- Australian Coal Association
- Asmin Koalindo Tuhup - Indonesia
- Georgia Ports Authority, United States
- Larsen & Toubro Limited - India
- Bulk Trading Sa - Switzerland
- Rio Tinto Coal - Australia
- Mercator Lines Limited - India
- Ind-Barath Power Infra Limited - India
- Sojitz Corporation - Japan
- Energy Link Ltd, New Zealand
- SMG Consultants - Indonesia
- International Coal Ventures Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Bukit Makmur.PT - Indonesia
- Marubeni Corporation - India
- London Commodity Brokers - England
- Gujarat Sidhee Cement - India
- Star Paper Mills Limited - India
- Coal and Oil Company - UAE
- Kaltim Prima Coal - Indonesia
- Agrawal Coal Company - India
- Sree Jayajothi Cements Limited - India
- Indika Energy - Indonesia
- Latin American Coal - Colombia
- Karbindo Abesyapradhi - Indoneisa
- CIMB Investment Bank - Malaysia
- Carbofer General Trading SA - India
- Attock Cement Pakistan Limited
- Interocean Group of Companies - India
- Indogreen Group - Indonesia
- Dalmia Cement Bharat India
- Aboitiz Power Corporation - Philippines
- Antam Resourcindo - Indonesia
- White Energy Company Limited
- Riau Bara Harum - Indonesia
- Videocon Industries ltd - India
- Barasentosa Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Xindia Steels Limited - India
- Goldman Sachs - Singapore
- Parry Sugars Refinery, India
- Malabar Cements Ltd - India
- Indonesian Coal Mining Association
- Neyveli Lignite Corporation Ltd, - India
- Vijayanagar Sugar Pvt Ltd - India
- Bhatia International Limited - India
- Standard Chartered Bank - UAE
- IEA Clean Coal Centre - UK
- Indian Oil Corporation Limited
- Vizag Seaport Private Limited - India
- Essar Steel Hazira Ltd - India
- Lanco Infratech Ltd - India
- Toyota Tsusho Corporation, Japan
- Uttam Galva Steels Limited - India
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Wilmar Investment Holdings
- Ministry of Mines - Canada
- Price Waterhouse Coopers - Russia
- Renaissance Capital - South Africa
- Deloitte Consulting - India
- Ceylon Electricity Board - Sri Lanka
- Grasim Industreis Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sical Logistics Limited - India
- Posco Energy - South Korea
- Jaiprakash Power Ventures ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Vedanta Resources Plc - India
- Formosa Plastics Group - Taiwan
- Kartika Selabumi Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Bahari Cakrawala Sebuku - Indonesia
- Metalloyd Limited - United Kingdom
- Bukit Baiduri Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- Global Green Power PLC Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- San Jose City I Power Corp, Philippines
- India Bulls Power Limited - India
- Bangladesh Power Developement Board
- Mintek Dendrill Indonesia
- Kepco SPC Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- PTC India Limited - India
- Jindal Steel & Power Ltd - India
- Sindya Power Generating Company Private Ltd
- MS Steel International - UAE
- Thiess Contractors Indonesia
- Pendopo Energi Batubara - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Central Electricity Authority - India
- Romanian Commodities Exchange
- European Bulk Services B.V. - Netherlands
- Bayan Resources Tbk. - Indonesia
- TeaM Sual Corporation - Philippines
- Ambuja Cements Ltd - India
- Bharathi Cement Corporation - India
- Oldendorff Carriers - Singapore
- LBH Netherlands Bv - Netherlands
- Orica Australia Pty. Ltd.
- GMR Energy Limited - India
- Energy Development Corp, Philippines
- Heidelberg Cement - Germany
- Sarangani Energy Corporation, Philippines
- ASAPP Information Group - India
- Minerals Council of Australia
- Semirara Mining Corp, Philippines
- Therma Luzon, Inc, Philippines
- Wood Mackenzie - Singapore
- Altura Mining Limited, Indonesia
- Makarim & Taira - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Singapore Mercantile Exchange
- Ministry of Finance - Indonesia
- South Luzon Thermal Energy Corporation
- Baramulti Group, Indonesia
- Indo Tambangraya Megah - Indonesia
- New Zealand Coal & Carbon
- Kobexindo Tractors - Indoneisa
- Sakthi Sugars Limited - India
- Bhoruka Overseas - Indonesia
- Manunggal Multi Energi - Indonesia
- Timah Investasi Mineral - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Indian Energy Exchange, India
- CNBM International Corporation - China
- Power Finance Corporation Ltd., India
- Bhushan Steel Limited - India
- Chettinad Cement Corporation Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sinarmas Energy and Mining - Indonesia
- Petron Corporation, Philippines
- Siam City Cement - Thailand
- Binh Thuan Hamico - Vietnam
- Bukit Asam (Persero) Tbk - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- AsiaOL BioFuels Corp., Philippines
- Parliament of New Zealand
- Rashtriya Ispat Nigam Limited - India
- Meralco Power Generation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Jorong Barutama Greston.PT - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Tamil Nadu electricity Board
- Siam City Cement PLC, Thailand
- Australian Commodity Traders Exchange
- Africa Commodities Group - South Africa
- Orica Mining Services - Indonesia
- The University of Queensland
- Miang Besar Coal Terminal - Indonesia
- Global Business Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Planning Commission, India
- Karaikal Port Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Thai Mozambique Logistica
- Ministry of Transport, Egypt
- GN Power Mariveles Coal Plant, Philippines
- Medco Energi Mining Internasional
- Banpu Public Company Limited - Thailand
- The Treasury - Australian Government
- Alfred C Toepfer International GmbH - Germany
- GVK Power & Infra Limited - India
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