MEMR issues new regulation on tender of metal minerals, coal mining areas
Monday, September 23 2013 - 06:03 AM WIB
Minister of Energy and Mineral Resources (MEMR) Jero Wacik has issued a new Minister Regulation No 28/2013 on tender mechanism for mining business permit areas (also known under its Bahasa abbreviation of WIUP) and for special mining business permit areas (WIUPK) of both metal minerals and coal.
According to the copy of the new regulation, obtained by Petromindo.com Monday, the WIUP and WIUPK of metal minerals and coal are determined by the minister based on recommendations made by governors, and regents/mayors.
In the case that the WIUP and WIUPK of metal minerals and coal are located in forest areas, the MEMR in determining the areas will coordinate with the Ministry of Forestry.
After having been determined by the Minister, WIUP of metal minerals and coal will be offered to companies, cooperatives or individual investors via tender held by the minister, governors, or regents/mayors in accordance with their respective authority.
The WIUPK of metal minerals and coal are prioritized for state-owned companies and companies owned by local governments of regions where the mining areas are located. The WIUPKs are also offered via tender mechanism.
The minister, governors, regents/mayors are obliged to make public announcement in at least one local and/national print media, and at the offices of the MEMR, governors, regents/mayors and their respective websites at least three months before holding the tender.
The tender for WIUP of metal minerals and coal are held by the authorities:
MEMR if the WIUP of metal minerals and coal are located within the border areas of provinces or in off shore areas of more than 12 miles from the shore line following recommendations from the local governors and mayors/regents.
Governors if the WIUP of metal minerals and coal are located within the border areas of regencies/mayoralties in a province, or if they?re located in off shore areas within the range of 4-12 miles from the shore line following recommendations from the local regents/mayors.
Regents/Mayors if the WIUP of metal minerals and coal are located within a regency/mayoralty or in offshore areas of up to 4 miles from the shore line.
Governors, regents/mayors are required to give the aforementioned recommendations within five days since the request is made. If the recommendations are not given within the specific timeline, the governors regents/mayors are considered to have approved the tender for the WIUP of metal minerals and coal.
Editing by Reiner Simanjuntak