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Summary of Minister of Energy and Mineral Resources Regulation No. 20 of 2013 on Second Amendment to the Minister of Energy and Mineral Resource Regulation No. 7 of 2012 on Added Value of Mineral Through Mineral Processing and Refinery

Worker examining pile of coal at mineIn order to guarantee legal certainty in carrying out control over mineral sale to overseas and to implement Decision of Supreme Court No. 10P/HUM/12 dated September 12, 2012, it is necessary to re-amend the stipulations on mineral added value through processing and refinery activities.

Minister of Energy and Mineral Resource Regulation No. 7 of 2012 on Added Value of Mineral Through Mineral Processing and Refinery is first amended by Minister of Energy and Mineral Resource Regulation No. 11 of 2012. Subsequently, it is now amended for the second time with the following changes:

Article 8 paragraph (2), (3) and (4) have been amended, so that the paragraph of this article shall be read as follows:

(2) Joint operation on processing and/or refinery between the holder of Production Operation IUP and Production Operation IUPK, and (i) the holder of Operation Production IUP;  (ii) Production Operation IUPK; or (iii) Production Operation IUP particularly for processing and refinery activities may be in the form of:

a. sale and purchase of ore or concentrate; or

b. processing and refining activities.

(3) The joint operation in processing and/or refining activities can only be performed after obtainement of approval. This approval is given by:

  1. the Minister,  if:
    1. the joint operation is entered between the holder of Production Operation IUP or Production Operation IUPK issued by Minister with (i) other holder of Production Operation IUP and IUPK issued by the Minister; (ii) other holder of Production Operation IUP issued by the Regent/Mayor or Governor; (iii) the holder of Production Operation IUP particularly for processing and/or refining issued by the Minister; and (iv) supplier of imported ore (raw material or ore), concentrate, or other products, such as mineral for processing and/or refining in accordance with minimum limit of processing and/or refining as set forth in the attachment of this regulation;
    2. the joint operation is entered between the holders of Production Operation IUP issued by 2 (two) Governors having 2 (two) different areas;
    3. the joint operation is entered between the holders of Production Operation IUP issued by 2 (two) Regents/Mayors of different provinces;
    4. the joint operation is entered between the holder of Production Operation IUP issued by Governor or Regent/Mayor with the holder of Production Operation IUP particularly for processing and/or refining issued by the Minister.
    5. the Governor, if:
      • the joint operation is entered between the holder of Production Operation IUP issued by the Governor with (i) other holder of Production Operation of IUP issued by the Governor in 1 (one) province; (ii) other holder of Production Operation IUP issued by the Regent/Mayor in 1 (one) province; and (iii) the holder of Production Operation IUP particularly for processing and/or refining issued by the Governor in 1 (one) province;
      • the joint operation is entered between the holders of Production Operation IUP issued by the Regent/Mayor in 1 (one) province;
      • the joint operation is entered between the holder of Production Operation IUP issued by the Regent/Mayor and the holder of Production Operation IUP particularly for processing and/or refining issued by the Governor;
      • the Regent/Mayor, if the joint operation is entered between the holder of Production Operation IUP issued by the Regent/Mayor and (i) other holder of Production Operation of IUP issued by the Regent/Mayor in 1 (one) regency/municipality; (ii) the holder of Production Operation IUP particularly for processing and/or refining issued the Regent/Mayor in 1 (one) regency/municipality.

(4) A production operation IUP, particularly for processing and refinery activities is issued by the Minister, Governor, or Regent/Mayor in accordance with the provisions in the statutory regulation.

The provisions under Article 21A paragraph (1) and (2) have been amended and 1 (one) new paragraph namely paragraph 1a has been inserted between Article 21A paragraph (1) and (2), so that Article 21 shall read as follows :

(1)      The holder of Production Operation IUP and IPR may sell mineral ore (material or ore) to overseas up to January 12, 2014 in accordance with the Government Regulation No 23 of 2010 on Implementation of Mineral and Coal Mining Business Activities.

(1A) To be able to sell ore (raw material or ore0 to overseas, the holder of Production Operation IUP and IPR  must obtain approval for export from the Minister of Trade or the official appointed in accordance with the provisions in the statutory regulation having obtained prior recommendation from the Minister.

(2) Recommendation from the Minister referred to paragraph (1a) shall be granted after the holder of Production Operation IUP and IPR complies with the requirements, namely:

  1. Status of Production Operation IUP and IPR is clean and clear;
  2. Fully paid the financial obligatory payment to the State;
  3. Submitted work program and/or joint operation program on domestic mineral processing and/or refining; and
  4. Signed deed of integrity.

(3) Article 9, 10 and 21 are deleted. In addition, Chapter IX is now Chapter VIII and Chapter X became Chapter IX.

(4) Amended of Attachments I, II and III should be read as an inseparable part of this Regulation.

This Minister Regulation comes into force on 1st October , 2013.

 

Summary of Minister of Energy and Mineral Resources Regulation No. 20 of 2013 on Second Amendment to the Minister of Energy and Mineral Resource Regulation No. 7 of 2012 on Added Value of Mineral Through Mineral Processing and Refinery
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