Draft Coal Value Added Regulation

AuthorWilliam A. Sullivan/Christian Teo Purwono & Partners
ProfessionLicensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
Draft Coal Value Added Regulation
I. Executive Summary
1. Overview
1.1 An advanced draft of the Coal Value Added Regulation (otherwise
known as the Draft CVA Regulation) has been circulated by way
of the intended eventual implementation of Article 96 of GR 23/2010.
1.2 At this time, it is not possible to say when the Draft CVA Regulation
will be nalized and issued.
2. Approach
2.1 Determination of Processing Requirements: Processing require-
ments for coal are to be based on the following considerations:
a. Availability of coal resources and reserves in large quantities;
b. Existence of proven processing and rening technologies;
c. Need for the nal product of processing and rening activities as
raw materials for domestic industry;
d. Suitability of coal resources and reserves as a source of domestic
e. Dual economic and social impact; and
f. Potential to increase state revenues.
2.2 Carrying Out of Processing Requirements: Processing of coal, as
a mineral product, is to be carried out through the following activities:
a. Coal crushing;
b. Coal washing;
c. Coal blending;
d. Coal upgrading; and/or
e. Processing of low-ranked coal to become active carbon.

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