MEMR to tender coal concessions returned by miners

The Ministry of Energy and Mineral Resources (MEMR) will offer to investors a total of 9,026 hectares of coal mining areas returned by 10 coal miners holding the coal contracts of work (or better known as PKP2B), Kontan reported on Tuesday.

The paper quoted Director for Coal Management and Development at the ministry Adhi Wibowo the mining areas were returned by the 10 miners which have recently completed amendment to their PKP2B contracts to be in line with the 2009 Mining Law, which among others limit a miner?s concession area to 25,000 ha.

He said that the government will give priority to state-owned and regional-government owned companies in acquiring the returned concessions. He, however, did not say when the tender will be held.

The returned mining areas will be first declared as State Reserve Area, Adhi said. Prior to holding tender, the government through the Geological Agency will first make estimates of the coal reserves in the mining areas, he added. (*)