Government misses mining contract amendment deadline again
Wednesday, December 21 2016 - 04:06 AM WIB
Petromindo|Thomas
Minister of Energy and Mineral Resources Ignasius Jonan said that the government will not be able to complete the long-delayed mining contract amendment by the end of this year as previously targeted.
Jonan said on Tuesday that the amendment of the mining contracts will be completed within the next six months.
He argued that the government will have to complete first drafting a new government regulation to pave way for the completion of the mining contract amendment. He said that a new government regulation on mineral and coal is targeted to be completed by the end of this year.
Jonan said that while the government is determined to honor existing contracts, he expected miners to be cooperative in the amendment of their mining contracts as mandated by the 2009 Mining Law.
He warned miners that the government may take actions such as not approving their work program and budget if they continue to be uncooperative in the amendment of their mining contracts.
The government has repeatedly missed targets to complete the negotiation with miners in amending their contracts, which is aimed to adjust the contracts to terms set in the 2009 Mining Law including higher revenue for the government such as from royalty. The law stipulates that the mining contract amendment should have been completed within a year, or in 2010.
Director General of Mineral and Coal Bambang Gatot Ariyono said in October that the mining contract amendment was expected to be entirely completed by the end of this year.
According to Bambang at the time, among of the tough issues which have yet to be settled include divestment obligation and higher royalty for the state.
Bambang said that of the total 34 KK miners, nine have signed agreement with the government for contract amendment, five miners have signed MoUs agreeing to the proposed changes, and 20 others are still in negotiation process with the government.
Meanwhile, of the 74 PKP2B miners, 22 have signed agreement for contract amendment, four signed MoUs, 43 still in negotiation process, and five contracts will be terminated.
Editing by Reiner simanjuntak