May 1 deadline for old Indonesian mining permits

Indonesia's Mines ministry has ruled that Mining permit holders (KP) and regional government-issued mining permits must complete the transition process to the new mining permit (IUP) or local mining permit (IPR) by the end of April 2010. Director of Mineral and Coal Management of the Directorate of Mineral, Coal and Geothermal, Bambang Gatot Aryono, said the IUP completion deadlines has been stipulated in Government Regulation (PP) No. 23/2010 for Mining Business Activities.

He explained that in accordance with the Transitional Provisions of Article 112 Point 4 Government Regulation no. 23/2010, adjustments to IUP or IPR should be conducted at maximum of three months from enactment in April 2010. Without an IUP, said Bambang, the mining area will not be included in the mining permit area (WIUP) soon to be published by the government.

"By April at the latest, all of this application for conversion to the IUP must be completed. If they do not process, it would affect their mining operations. Their areas will not be secured," he said as quoted by Bisnis indonesia.

However, companies with overlapping area issues will not be able to immediately transfer to the IUP. "If there is an area overlapping problem, please settle it first. The IUP settlement is related to the determination of WIUP, which will be auctioned after approval by the Minister of Energy and Mineral Resources," he said.

He added that contract of work holders (KK) and coal mining contract holders (PKP2B) do not need to submit applications for IUP until their contract period ends.