Executive Summary on the Conduct of Mineral and Coal Mining Services Business - Indonesia
April 16, 2010 By Leks & Co
Regulation of Minister of Energy and Mineral Resources No. 28 of 2009 on The Conduct of Mineral and Coal Mining Services Business (the “Minister Regulation”) is issued in Jakarta on September 30, 2009. This Minister Regulation is the implementing regulation of Article 127 of Law No. 4 of 2009 on Mineral and Coal Mining (the “Mining Law”).
Regulation of Minister of Energy and Mineral Resources No. 28 of 2009 on The Conduct of Mineral and Coal Mining Services Business (the “Minister Regulation”) is issued in Jakarta on September 30, 2009. This Minister Regulation is the implementing regulation of Article 127 of Law No. 4 of 2009 on Mineral and Coal Mining (the “Mining Law”).
Important points that may affect your business
1. Affiliated Company
Holders of Mining Permit (Ijin Usaha Pertambangan – “IUP”) or Special Mining Permit (Ijin Usaha Pertambangan Khusus – “IUPK”) may not involve subsidiaries and/or its affiliate company of mining services business.
Article 8
Paragraph (1)
“At no time shall any Mining Permit holders or Special Mining Permit holders involve their subsidiaries and/or affiliates in the fileds/lines of mining services business in mining areas they commercialize, unless granted approval of the Director General on behalf of the Minister.”
Paragraph (2)
“Subsidiaries and/or affiliates as intended by section (1) shall be business entities having direct ownership of shares of Mining Permit holders or Special Mining Permit holders.
2. Mining company must perform its own mining activities
Article 10
Paragraph (1)
“Production Operation Mining Permit holders or Special Mining Permit holders must perform itself mine activities, processing and refining/smelting.”
3. Mining activities that can be undertaken by mining services company
Article 10
Paragraph (2)
“Production Operation Mining Permit holders or Special Mining Permit holders may refer mine activities to mining services business, the activities of which are limited to:
a. stripping of overburden to;
b. hauling of minerals and coal.
4. Mining company cannot accept any fees from mining services company
Article 7
Paragraph (2)
“At no time shall any Mining Permit holders or Special Mining Permit holders collect fees from
work performed by mining services business actors.”
ABOUT THE AUTHOR: Ardhityo Rompas
Leks&Co are law offices specialized in the real estate law, filled by young, energetic, creative lawyers, providing premium legal services with competitive price plus 7 amazing added values, and delivering our services based on definite core values.
Copyright Leks & Co
More information about Leks & Co
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Important points that may affect your business
1. Affiliated Company
Holders of Mining Permit (Ijin Usaha Pertambangan – “IUP”) or Special Mining Permit (Ijin Usaha Pertambangan Khusus – “IUPK”) may not involve subsidiaries and/or its affiliate company of mining services business.
Article 8
Paragraph (1)
“At no time shall any Mining Permit holders or Special Mining Permit holders involve their subsidiaries and/or affiliates in the fileds/lines of mining services business in mining areas they commercialize, unless granted approval of the Director General on behalf of the Minister.”
Paragraph (2)
“Subsidiaries and/or affiliates as intended by section (1) shall be business entities having direct ownership of shares of Mining Permit holders or Special Mining Permit holders.
2. Mining company must perform its own mining activities
Article 10
Paragraph (1)
“Production Operation Mining Permit holders or Special Mining Permit holders must perform itself mine activities, processing and refining/smelting.”
3. Mining activities that can be undertaken by mining services company
Article 10
Paragraph (2)
“Production Operation Mining Permit holders or Special Mining Permit holders may refer mine activities to mining services business, the activities of which are limited to:
a. stripping of overburden to;
b. hauling of minerals and coal.
4. Mining company cannot accept any fees from mining services company
Article 7
Paragraph (2)
“At no time shall any Mining Permit holders or Special Mining Permit holders collect fees from
work performed by mining services business actors.”
ABOUT THE AUTHOR: Ardhityo Rompas
Leks&Co are law offices specialized in the real estate law, filled by young, energetic, creative lawyers, providing premium legal services with competitive price plus 7 amazing added values, and delivering our services based on definite core values.
Copyright Leks & Co
More information about Leks & Co
View all articles published by Leks & Co
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
