Govt encourages junior miners to carry out exploration activity
Tuesday, June 6 2017 - 03:08 AM WIB
Petromindo|Lucky
The government has encouraged junior miners to run exploration activities in Indonesia as the current licensing system under the Mining Business License (IUP) regime provides certainty for investment in mining exploration.
Junior mining company is an exploration company that looks for new deposits of coal, gold, silver, uranium or other precious minerals.
Director General of Mineral and Coal Bambang Gatot Ariyono said that junior mining companies don?t need to worry in carrying out mining exploration in Indonesia. ?We have adjusted IUP system into two stages of exploration and production operation. This will give certainty if general surveys, exploration and feasibility study are fulfilled, it could be then continued by other companies interested in the production operation phase,? Bambang said at the IAGI (Indonesia Association of Geologist) meeting recently.
Under the current regulation, an exploration IUP/IUPK is granted for the performance of general surveys, exploration and feasibility studies within a commercial mining business area (WUP) or State reserve area (WPN) area, while an Operation Production IUP/IUPK is granted for performing construction, mining, processing, refining, hauling and selling within the WUP/WPN area.
A study by Indonesia Mining Institute earlier said that there were some 17 main points that inhibit exploration in Indonesia, including difficulty of site access, duplication of regulations, lack of infrastructure, and lack of faith in the legal system.
Editing by Reiner Simanjuntak