Types of Mining Business
Posted by indonesiamininglaw in Mining Business on January 17, 2012
Pursuant to Article 34 of Law No. 4 of 2009 on Mineral and Coal Mining (“Mining Law”), mining business can be divided into two types:
(i) Mineral mining; and
(ii) Coal mining.
The Governmental Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining Business Activities (“GR 23/2010”) states that the implementation of mineral and coal mining business activities is fundamentally purposed to benefit the society as a whole.
Mineral Mining
The classifications of mineral mining are: Read the rest of this entry »
Small Scale Mining Area (Wilayah Pertambangan Rakyat)
Posted by indonesiamininglaw in Mining Area on January 13, 2012
Background
As explained in Article 1 (32) of Law No. 4 of 2009 on Mineral and Coal Mining (“Mining Law”), Small Scale Mining Area means a part of the mining zone (wilayah pertambangan) where small scale mining activities are performed. These areas are determined by the mayors/municipal governments after consulting with the Regional House of Representatives of district or cities (Dewan Perwakilan Rakyat Daerah Kabupaten/Kota). Article 22 of Mining Law lays down a few criteria that guides the determination/designation of Small Scale Mining Area, which would be publicly announced by the relevant mayors/municipal governments. Those are: Read the rest of this entry »
Executive Summary on Regulation of Minister of Energy and Mineral Resources No. 28 of 2009 on The Conduct of Mineral and Coal Mining Services Business
Posted by indonesiamininglaw in Mineral and Coal Mining Law on June 16, 2011
Regulation of Minister of Energy and Mineral Resources No. 28 of 2009 on The Conduct of Mineral and Coal Mining Services Business (the “Minister Regulation”) is issued in Jakarta on September 30, 2009. This Minister Regulation is the implementing regulation of Article 127 of Law No. 4 of 2009 on Mineral and Coal Mining (the “Mining Law”).
Important points that may affect your business
1. Affiliated Company
Holders of Mining Permit (Ijin Usaha Pertambangan – “IUP”) or Special Mining Permit (Ijin Usaha Pertambangan Khusus – “IUPK”) may not involve subsidiaries and/or its affiliate company of mining services business.
Article 8
Paragraph (1)
“At no time shall any Mining Permit holders or Special Mining Permit Read the rest of this entry »
Memo on Law No. 4 of 2009 on Mineral and Coal Mining
Posted by indonesiamininglaw in Mineral and Coal Mining Law on June 16, 2011
Background
Formerly, mining was regulated with Law No. 11 of 1967 on Basic Regulation on Mining (“Law No. 11 of 1967”). But with the highly development of mining, nationally and internationally, Law No. 11 of 1967 is no longer suitable with the conditions nowadays. That
is why there is the need for changes of regulation on mineral and coal mining which could manage and utilize the potential of mineral and coal in Indonesia and could ensure a continuous national development accordingly.
In January 2009 the government stipulated a new regulation on mining. It is Law No. 4 of 2009 on Mineral and Coal Mining (“Law No. 4 of 2009”). This Law is changing the use of Kuasa Pertambangan into Mining Business License (Izin Usaha Pertambangan) (“IUP”).
Mining Area
Posted by indonesiamininglaw in Mining Area on June 15, 2011
Background
As explained in Article 1 (30) of Law No. 4 of 2009 on Mineral and Coal Mining (“Mining Law”), Mining Area means a part of Mining Zone which has already been completed with available data, unlocked potentials and/or geological information. Mining Zone means a zone with potential mineral and/or coal reserves, unbound by the limits of government administration as part of the national zoning plan (tata ruang nasional).
It is within the central government’s rights, in the pursuit of public interests, to determine Mining Zone. Article 14 of Mining Law stipulates that a determination of Mining Area is conducted upon the coordination between central and regional governments, on the basis of both parties’ data, and shall be delivered in writing to the House of Representatives. Some of the central government’s authorities may be delegated to provincial governments. Both levels of government must continuously carry out mining surveys, exploration, and research and make inventories in preparation of Mining Zone.
Determination of Mining Area
Article 16 of Mining Law states that one Mining Area shall consist of 1 (one) or some Mining Permit Area, of which the locations overlap the boundaries of provinces and/or districts//cities.
There are some criteria, which the government may apply in determining one or more Mining Permit Area: Read the rest of this entry »
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