Government simplifies mining licenses

Minister of Energy and Mineral Resources Ignasius Jonan has issued new Ministerial Regulation No 34/2017 on coal and mining licenses, which simplifies the licensing procedure in the country?s mining sector.

Director General of Mineral and Coal at the ministry, Bambang Gatot Ariyono said that the new regulation, which is an amendment to Ministerial Regulation No 32/2013, simplifies the licensing procedure in a bid to help accelerate business processes in the mining sector. ?The (required) documents for various licenses are simplified so that people (miners) can be easier and quicker in obtaining the licenses,? he said on Tuesday.

He, however, stressed that the new regulation does not abolish the principle that miners must have the required licenses, but that certain licenses are now merged into one for simplification. ?The new regulation simplifies the required licenses but not omitting them. That?s the model now,? he said, adding that the validity period of the IUP mining business license is still maintained.

Bambang pointed out that production operation special mining business license (or production operation special IUP) is valid for 20 years, and can be extended twice, each for 10 years.

However, production operation special IUP license for processing facility and/or smelter is given longer validity period of up to 30 years, and can be extended for another 20 years for each extension request. (*)