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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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Wednesday, 03 February 16
DRY BULK MARKET CONTINUES TO BE UNDER PRESSURE - INTERMODAL
The Dry Bulk market continues to be under pressure, with the BDI remaining in search of even the slightest support, which seems to be delaying more ...
Tuesday, 02 February 16
RECORD EXPORTS THROUGH SOUTH AFRICA'S RICHARDS BAY COAL TERMINAL MADE AT EXPENSE OF SMALLER RIVALS, IHS SAYS
Five percent increase in coal exports through South Africa’s dominant Richards Bay Coal Terminal in 2015 unlikely to accelerate country&rsquo ...
Tuesday, 02 February 16
SETTING ASIDE, STRIKING OUT AND APPEALS TO THE COURT OF APPEAL IN SHIP ARRESTS - RAJAH & TANN ASIA LLP
KNOWLEDGE TO ELEVATE
The Singapore Court of Appeal once again has had to grapple with ship arrest, setting aside and appeals to the Court unde ...
Monday, 01 February 16
DRY BULK SUFFERS FROM POSEIDON'S POTENT PRONGS - CLARKSONS
It has been a grim start to 2016 for the bulkcarrier market, with the Baltic Dry Index sliding to new record lows on almost every day of the year s ...
Monday, 01 February 16
INDONESIA'S SECOND LARGEST COAL MINER ADARO ENERGY HAS PRODUCED 51.46 MT IN 2015; 8% LOWER COMPARED TO FY14
COALspot.com: Adaro Energy, the Indonesia’s second largest coal producer by volume has produced 51.46 Mt in 2015, 8% lower compared to ...
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- Australian Coal Association
- Pipit Mutiara Jaya. PT, Indonesia
- Meenaskhi Energy Private Limited - India
- Merrill Lynch Commodities Europe
- South Luzon Thermal Energy Corporation
- McConnell Dowell - Australia
- Iligan Light & Power Inc, Philippines
- Sojitz Corporation - Japan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- VISA Power Limited - India
- Global Coal Blending Company Limited - Australia
- Simpson Spence & Young - Indonesia
- Vizag Seaport Private Limited - India
- Uttam Galva Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Africa Commodities Group - South Africa
- Cement Manufacturers Association - India
- Kobexindo Tractors - Indoneisa
- GMR Energy Limited - India
- Bharathi Cement Corporation - India
- Star Paper Mills Limited - India
- The State Trading Corporation of India Ltd
- PTC India Limited - India
- Globalindo Alam Lestari - Indonesia
- Indonesian Coal Mining Association
- Energy Development Corp, Philippines
- Formosa Plastics Group - Taiwan
- Intertek Mineral Services - Indonesia
- Renaissance Capital - South Africa
- Kapuas Tunggal Persada - Indonesia
- Central Electricity Authority - India
- Samtan Co., Ltd - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Borneo Indobara - Indonesia
- Vedanta Resources Plc - India
- Ambuja Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Jorong Barutama Greston.PT - Indonesia
- Goldman Sachs - Singapore
- Sakthi Sugars Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- PetroVietnam Power Coal Import and Supply Company
- SN Aboitiz Power Inc, Philippines
- Tamil Nadu electricity Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IEA Clean Coal Centre - UK
- Georgia Ports Authority, United States
- PowerSource Philippines DevCo
- Standard Chartered Bank - UAE
- Kartika Selabumi Mining - Indonesia
- Makarim & Taira - Indonesia
- Bukit Baiduri Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Larsen & Toubro Limited - India
- Mintek Dendrill Indonesia
- Wilmar Investment Holdings
- Chettinad Cement Corporation Ltd - India
- Coalindo Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Pendopo Energi Batubara - Indonesia
- Thai Mozambique Logistica
- Kumho Petrochemical, South Korea
- Posco Energy - South Korea
- Sarangani Energy Corporation, Philippines
- Baramulti Group, Indonesia
- Ceylon Electricity Board - Sri Lanka
- Semirara Mining Corp, Philippines
- Planning Commission, India
- European Bulk Services B.V. - Netherlands
- Anglo American - United Kingdom
- Bhushan Steel Limited - India
- Kideco Jaya Agung - Indonesia
- Global Green Power PLC Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Tata Chemicals Ltd - India
- Bhatia International Limited - India
- Orica Mining Services - Indonesia
- SMC Global Power, Philippines
- Gujarat Sidhee Cement - India
- Malabar Cements Ltd - India
- Holcim Trading Pte Ltd - Singapore
- AsiaOL BioFuels Corp., Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Sree Jayajothi Cements Limited - India
- Central Java Power - Indonesia
- Karaikal Port Pvt Ltd - India
- ICICI Bank Limited - India
- CIMB Investment Bank - Malaysia
- Wood Mackenzie - Singapore
- India Bulls Power Limited - India
- Cigading International Bulk Terminal - Indonesia
- Riau Bara Harum - Indonesia
- Toyota Tsusho Corporation, Japan
- San Jose City I Power Corp, Philippines
- Bangladesh Power Developement Board
- Indika Energy - Indonesia
- GVK Power & Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
- Manunggal Multi Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- Mercuria Energy - Indonesia
- Siam City Cement PLC, Thailand
- Miang Besar Coal Terminal - Indonesia
- Commonwealth Bank - Australia
- Latin American Coal - Colombia
- Economic Council, Georgia
- Parliament of New Zealand
- Directorate Of Revenue Intelligence - India
- Carbofer General Trading SA - India
- Trasteel International SA, Italy
- London Commodity Brokers - England
- Metalloyd Limited - United Kingdom
- Global Business Power Corporation, Philippines
- Romanian Commodities Exchange
- Sinarmas Energy and Mining - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Parry Sugars Refinery, India
- Altura Mining Limited, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Australian Commodity Traders Exchange
- Edison Trading Spa - Italy
- Maheswari Brothers Coal Limited - India
- Timah Investasi Mineral - Indoneisa
- ASAPP Information Group - India
- Deloitte Consulting - India
- Energy Link Ltd, New Zealand
- SMG Consultants - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Antam Resourcindo - Indonesia
- Madhucon Powers Ltd - India
- Xindia Steels Limited - India
- LBH Netherlands Bv - Netherlands
- Heidelberg Cement - Germany
- Independent Power Producers Association of India
- Savvy Resources Ltd - HongKong
- Attock Cement Pakistan Limited
- Port Waratah Coal Services - Australia
- Banpu Public Company Limited - Thailand
- Eastern Energy - Thailand
- Grasim Industreis Ltd - India
- IHS Mccloskey Coal Group - USA
- Karbindo Abesyapradhi - Indoneisa
- Jindal Steel & Power Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- Bhoruka Overseas - Indonesia
- Minerals Council of Australia
- Kohat Cement Company Ltd. - Pakistan
- Maharashtra Electricity Regulatory Commission - India
- Bukit Makmur.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- New Zealand Coal & Carbon
- The University of Queensland
- Rashtriya Ispat Nigam Limited - India
- Petron Corporation, Philippines
- The Treasury - Australian Government
- White Energy Company Limited
- Ministry of Transport, Egypt
- Chamber of Mines of South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Oldendorff Carriers - Singapore
- Siam City Cement - Thailand
- GAC Shipping (India) Pvt Ltd
- Kaltim Prima Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thiess Contractors Indonesia
- Ministry of Finance - Indonesia
- Power Finance Corporation Ltd., India
- Bayan Resources Tbk. - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Marubeni Corporation - India
- Essar Steel Hazira Ltd - India
- Rio Tinto Coal - Australia
- Price Waterhouse Coopers - Russia
- Aditya Birla Group - India
- Indogreen Group - Indonesia
- Interocean Group of Companies - India
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- PNOC Exploration Corporation - Philippines
- Straits Asia Resources Limited - Singapore
- Meralco Power Generation, Philippines
- Sical Logistics Limited - India
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Jaiprakash Power Ventures ltd
- Indian Oil Corporation Limited
- Lanco Infratech Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- CNBM International Corporation - China
- Coastal Gujarat Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Therma Luzon, Inc, Philippines
- Medco Energi Mining Internasional
- TeaM Sual Corporation - Philippines
- Orica Australia Pty. Ltd.
- Coal and Oil Company - UAE
- Electricity Generating Authority of Thailand
- Asmin Koalindo Tuhup - Indonesia
- Eastern Coal Council - USA
- Indian Energy Exchange, India
- Dalmia Cement Bharat India
- Ministry of Mines - Canada
- MS Steel International - UAE
- Bukit Asam (Persero) Tbk - Indonesia
- Singapore Mercantile Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
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