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ESDM Issues 7th List of Clean and Clear Mining Licenses and Stops Accepting Additional Licenses
On 16 October 2012 the Ministry of Energy and Mineral Resources (ESDM) issued the seventh list of mining concessions that have been certified by the ministry as clean and clear.
Any mining company that is listed on the Clean and Clear list is obliged to submit the following documents to obtain their Clean and Clear written certificate:
- · For holders of exploration licenses (IUP Eksplorasi), proof of all deadrent payments until the end of 2011 and exploration reports;
- · For holders of operation production licenses (IUP Operasi Produksi), proof of all deadrent and royalty payments until the end of 2011, exploration reports and feasibility studies, and relevant environmental approvals (AMDAL/UPL or UKL).
Although the clean and clear classification does not have a firm basis in law, it has emerged as a requirement for mineral export purposes (see ESDM Regulation No. 11 of 2012) and is likely to continue to grow in significance, making obtaining the certification increasingly important.
The ESDM has also announced National Reconciliation of Mining Licenses (IUP) - Stage II, which takes place as follows:
- · Kalimantan (18-19 September 2012)
- · Sulawesi (3-4 October 2012)
- · Sumatra (16-17 October 2012 )
- · Papua and Maluku (30-31 October 2012)
- · Java and Nusa Tenggara (13-14 November 2012)
Following this reconciliation, the ESDM will no longer accept applications to include IUPs issued by governments in the above areas for inclusion in the clean and clear list, except for IUP's that have been issued following a competitive tender under the provisions of Law No. 4 of 2009 on Mining (i.e. it will no longer be possible to include IUPs that are based on converted, previous generation, KP's in the clean and clear list if they have not been submitted to the ESDM by the above dates).
ESDM continues to review IUPs that have already been submitted for inclusion in the clean and clear list. If an already submitted IUP license is not yet included in the seventh list, the ESDM will include it in an upcoming list, provided that the due licensing process has been complied with and the mining area does not overlap.
Inclusion on the clean and clear list evidences that the IUP license is procedurally valid and that the mining areas that underlie these IUPs do not overlap with other mining concessions. It also evidences that the mining areas are free from conflicting claims.
The 1st clean and clear list is available from (by province): http://prokum.esdm.go.id/Lain-lain
Note: Later clean and clear lists include deletions of mining licenses that have been included in earlier lists, due to subsequently discovered overlaps and other issues.
For more information please visit www.lgslaw.co.id