Draft Guidelines for Licensing of Nonmetal Mineral and Rock Mining Business Activities 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
Pages323-345
CHAPTER 23
Draft Guidelines for Licensing
of Nonmetal Mineral and Rock
Mining Business Activities
Regulation
I. Executive Summary
1. Overview
1.1 An advanced draft of the Guidelines for Licensing Nonmetal Mineral
and Rock Mining Business Activities Regulation has been circulated
(hereinafter referred to as Draft NM&R Licensing Guidelines
Regulation) by way of the intended eventual implementation of
Article 27(2) of the 2009 Mining Law.
1.2 At this time, it is not possible to say when the Draft NM&R Licensing
Guidelines Regulation will be nalized and issued.
2. Approach
2.1 IUP Issuance Procedures: The issuance of IUPs for nonmetal
minerals and rocks involves two stages, namely (i) WIUP grant and
(ii) IUP grant.
2.2 WIUPs and IUPs may be granted to (i) a Business Entity, (ii) a
cooperative, or (iii) an individual.
2.3 IUPs are divided into two types, namely (i) Exploration IUPs, which
constitute permission to conduct a general investigation, exploration,
and a feasibility study; and (ii) Production Operation IUPs, which
constitute permission to conduct construction activities, rening and
processing, transportation, and sales.
323
2.4 Business Entities, cooperatives, or individuals wanting to obtain a
WIUP for nonmetal minerals and rocks must submit an application to
the Relevant Government Authority.
2.5 Business Entities, cooperatives, or individuals that have established
WIUP boundaries and coordinates must submit an application for an
Exploration IUP to the Relevant Government Authority not later than
ve working days after submission of a WIUP map and also meet
certain administrative, technical, environmental, and nancial
requirements.
2.6 Production Operation IUPs, for nonmetal minerals and rocks, are
given to Business Entities, cooperatives, and individuals by way of
conversion or upgrade of Explorations IUPs for nonmetal minerals
and rocks to become Production Operation IUPs.
2.7 Business Entities, cooperatives, or individuals that have received the
WIUP map boundaries and coordinates must provide a Guarantee of
Seriousness Deposit before applying for an Exploration IUP.
2.8 IUP Holder Obligations: The Draft NM&R Licensing Guidelines
Regulation species a number of obligations that need to be fullled
by IUP holders.
2.9 Exploration IUP holders have one year to complete a general
investigation of the whole IUP area. Exploration IUP holders must
carry out their exploration activities using proper technical proce-
dures. Not later than the end of the exploration period, the holder of
an Exploration IUP may undertake a feasibility study after delivering
to the Relevant Government Authority a full exploration report and
obtaining approval of the RKTTL and RKAB from the Relevant
Government Authority.
2.10 Construction activities must be based on and otherwise be by way of
implementation of the approved feasibility study, AMDAL, RKAB,
and RKTTL. Construction activities are to be conducted in accor-
dance with standard engineering and related procedures and,
wherever possible, using local goods, labor and services.
2.11 Once the holder of a Production Operation IUP has completed at
least 70% of all mine facilities and support facilities, as well as the
installation of all necessary equipment, the IUP holder may com-
mence mining, processing, rening, transportation, and sales
activities.
2.12 Production Operation IUP holders may also have the processing,
rening, sales, and transportation activities performed by other
parties that hold (i) Special Production Operation IUPs for Proces-
sing and Rening or (ii) Special Production Operation IUPs for Sales
and Transportation as the case may be.
324 Mining Law & Regulatory Practice in Indonesia

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT