Decision No. 375.K/MB.01/MEM.B/2023, issued by the Minister of Energy and Mineral Resources in 2023, regulates the Guidelines for the Submission, Evaluation, and Processing of Extension of the Mining Enterprise Permit Area (WIUP) and Special Mining Business Permission Area (VIUPK) for the Conservation of Mineral and Coal. Decision 375/2023 establishes the mechanisms to be used by holders of Mining Entrepreneurship Permit (IUPs) and/or Special Mine Business Permit.
The Minister has decided to issue Decision No. 177.K/MB.01/MEM.B/2024, which comes into force on 25 July 2024. In addition, these changes aim to maximize the potential mineral and coal reserves located between two or more Mining Territories. This is done by giving licensees the opportunity to conduct independent inventories in order to preserve and identify the sustainability of minerals and coals in each Mining Region.
New provisions that have been introduced under the Amendment, in particular those relating to the following:
- Mining Areas Extension: Expanded Criteria and Applicant Eligibility
The WUP’s extendable basic criteria, set out in Ministerial regulation No. 375/2023, remained the basis for change. The WUP in question must be bordered by the original WUP and not overlap with a specific region. The criteria applicable to holders of permits to apply for extension of mining areas have been adjusted with the amendment. The final criterion states that mining areas eligible for extension must not overlap with previous KK or PKP2B territories that have not been accommodated in the development plan for the entire territory approved by the Minister.
- Corridor-Shaped Mining Areas
Under the new amendment, licensees wishing to apply for extension of mining area for conservation purposes must prioritize adjacent mining areas and form a corridor as the territory for which their extension is requested.
- Payment of Compensation for Provided Information Data
Initially, Ministerial Regulation No. 375 of 2023 set out six conditions that licensees must meet to obtain ministerial approval for a plan of work to expand the mining area. However, these changes require the licensee to submit copies of the periodic conservation report as well as proof of the submission of the report for two years. Instead, they must submit a letter stating that all the data and documents submitted are true.
In order to obtain approval of the plan of work for the expansion of the Mining Territory, a letter indicating the willingness to pay damages on the information data established by the Minister must be sent by the Director-General of Minerals and Coal and deposited in the state cash no later than 7 (seven) working days from the date of the Non-tax State Acceptance (NPT) applicable to such agreement published.
Basic Law:
- Ministerial regulation of Energy and Mineral Resources of the Republic of Indonesia No. 375.K/Mb.01/Mem.B/2023 of the year 2023 on the Guidelines for Application, Evaluation, and Processing of Extension of Area of Mining Enterprise Permit and Area of Special Mining Permit in the Framework of Mineral and Coal Conservation
- Ministerial regulation of Energy and Mineral Resources of the Republic of Indonesia No. 177. K/Mb. 01/Mem. B/2024 On Amendments to Decree No. 375.K/Mb.01/Mem./B/2023 of the Ministry of Mineral Energy and Resources on Guidelines for Application, Evaluation, and Processing of Extension of Area of Mining Enterprise Permit and Area of Special Mining Business Permit in the Framework of Minerals and Coal Conservation
Reference:
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