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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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- San Jose City I Power Corp, Philippines
- Coal and Oil Company - UAE
- Siam City Cement - Thailand
- Krishnapatnam Port Company Ltd. - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Straits Asia Resources Limited - Singapore
- CNBM International Corporation - China
- Uttam Galva Steels Limited - India
- Cigading International Bulk Terminal - Indonesia
- Vizag Seaport Private Limited - India
- SN Aboitiz Power Inc, Philippines
- Central Electricity Authority - India
- Eastern Coal Council - USA
- Sindya Power Generating Company Private Ltd
- Anglo American - United Kingdom
- Bhoruka Overseas - Indonesia
- Bhatia International Limited - India
- Energy Development Corp, Philippines
- Price Waterhouse Coopers - Russia
- Pendopo Energi Batubara - Indonesia
- GAC Shipping (India) Pvt Ltd
- Heidelberg Cement - Germany
- Timah Investasi Mineral - Indoneisa
- Bhushan Steel Limited - India
- GMR Energy Limited - India
- Tata Chemicals Ltd - India
- Georgia Ports Authority, United States
- Kumho Petrochemical, South Korea
- Salva Resources Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- IEA Clean Coal Centre - UK
- LBH Netherlands Bv - Netherlands
- Posco Energy - South Korea
- Marubeni Corporation - India
- Merrill Lynch Commodities Europe
- TNB Fuel Sdn Bhd - Malaysia
- Independent Power Producers Association of India
- Barasentosa Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- ASAPP Information Group - India
- Sojitz Corporation - Japan
- GVK Power & Infra Limited - India
- MS Steel International - UAE
- Parliament of New Zealand
- The University of Queensland
- Ambuja Cements Ltd - India
- Star Paper Mills Limited - India
- Indo Tambangraya Megah - Indonesia
- Kobexindo Tractors - Indoneisa
- SMG Consultants - Indonesia
- Planning Commission, India
- Kapuas Tunggal Persada - Indonesia
- Central Java Power - Indonesia
- Aditya Birla Group - India
- PowerSource Philippines DevCo
- Jorong Barutama Greston.PT - Indonesia
- European Bulk Services B.V. - Netherlands
- Meenaskhi Energy Private Limited - India
- McConnell Dowell - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Parry Sugars Refinery, India
- Chettinad Cement Corporation Ltd - India
- Malabar Cements Ltd - India
- Singapore Mercantile Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- CIMB Investment Bank - Malaysia
- Commonwealth Bank - Australia
- Directorate General of MIneral and Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- OPG Power Generation Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Sree Jayajothi Cements Limited - India
- Simpson Spence & Young - Indonesia
- Rio Tinto Coal - Australia
- Gujarat Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Attock Cement Pakistan Limited
- Australian Commodity Traders Exchange
- Kohat Cement Company Ltd. - Pakistan
- Minerals Council of Australia
- Bulk Trading Sa - Switzerland
- Eastern Energy - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Latin American Coal - Colombia
- The State Trading Corporation of India Ltd
- London Commodity Brokers - England
- Standard Chartered Bank - UAE
- Antam Resourcindo - Indonesia
- Wilmar Investment Holdings
- Electricity Authority, New Zealand
- Bharathi Cement Corporation - India
- Indonesian Coal Mining Association
- Bukit Baiduri Energy - Indonesia
- The Treasury - Australian Government
- Thiess Contractors Indonesia
- Borneo Indobara - Indonesia
- Semirara Mining Corp, Philippines
- Banpu Public Company Limited - Thailand
- Kaltim Prima Coal - Indonesia
- Miang Besar Coal Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- South Luzon Thermal Energy Corporation
- Sical Logistics Limited - India
- Interocean Group of Companies - India
- Neyveli Lignite Corporation Ltd, - India
- Meralco Power Generation, Philippines
- Carbofer General Trading SA - India
- Deloitte Consulting - India
- Riau Bara Harum - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Formosa Plastics Group - Taiwan
- Metalloyd Limited - United Kingdom
- Essar Steel Hazira Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Baramulti Group, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Ministry of Transport, Egypt
- Ministry of Finance - Indonesia
- Gujarat Sidhee Cement - India
- Orica Mining Services - Indonesia
- Altura Mining Limited, Indonesia
- Grasim Industreis Ltd - India
- Siam City Cement PLC, Thailand
- SMC Global Power, Philippines
- PTC India Limited - India
- Electricity Generating Authority of Thailand
- Dalmia Cement Bharat India
- Videocon Industries ltd - India
- Port Waratah Coal Services - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Mercator Lines Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Orica Australia Pty. Ltd.
- Bukit Makmur.PT - Indonesia
- Samtan Co., Ltd - South Korea
- Thai Mozambique Logistica
- Toyota Tsusho Corporation, Japan
- Edison Trading Spa - Italy
- Bangladesh Power Developement Board
- Kideco Jaya Agung - Indonesia
- Sakthi Sugars Limited - India
- Bayan Resources Tbk. - Indonesia
- Global Green Power PLC Corporation, Philippines
- Oldendorff Carriers - Singapore
- Kepco SPC Power Corporation, Philippines
- Cement Manufacturers Association - India
- Binh Thuan Hamico - Vietnam
- Globalindo Alam Lestari - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- International Coal Ventures Pvt Ltd - India
- Renaissance Capital - South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mintek Dendrill Indonesia
- Aboitiz Power Corporation - Philippines
- Energy Link Ltd, New Zealand
- Medco Energi Mining Internasional
- Mjunction Services Limited - India
- Chamber of Mines of South Africa
- Iligan Light & Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Coalindo Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Ceylon Electricity Board - Sri Lanka
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- Mercuria Energy - Indonesia
- Lanco Infratech Ltd - India
- Indogreen Group - Indonesia
- Power Finance Corporation Ltd., India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Romanian Commodities Exchange
- Sarangani Energy Corporation, Philippines
- New Zealand Coal & Carbon
- Tamil Nadu electricity Board
- GN Power Mariveles Coal Plant, Philippines
- Jaiprakash Power Ventures ltd
- Gujarat Mineral Development Corp Ltd - India
- Makarim & Taira - Indonesia
- White Energy Company Limited
- Karaikal Port Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Global Business Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Intertek Mineral Services - Indonesia
- Indian Oil Corporation Limited
- India Bulls Power Limited - India
- Xindia Steels Limited - India
- Trasteel International SA, Italy
- ICICI Bank Limited - India
- Larsen & Toubro Limited - India
- Economic Council, Georgia
- Africa Commodities Group - South Africa
- Coastal Gujarat Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Petron Corporation, Philippines
- Indika Energy - Indonesia
- Wood Mackenzie - Singapore
- Australian Coal Association
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kartika Selabumi Mining - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Rashtriya Ispat Nigam Limited - India
- VISA Power Limited - India
- Directorate Of Revenue Intelligence - India
- Madhucon Powers Ltd - India
- PNOC Exploration Corporation - Philippines
- Ministry of Mines - Canada
- Maheswari Brothers Coal Limited - India
- Indian Energy Exchange, India
- Goldman Sachs - Singapore
- AsiaOL BioFuels Corp., Philippines
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