Number of IUP mining permits to drastically drop next year

Petromindo

The number of mining firms holding the IUP mining business permits may drastically drop to around 3,000 from the current total of 9,721 as many are set to expire in soon, while others may have to be revoked if they fail to get the so-called clear and clean (C&C) status by the January deadline.

Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono was quoted by beritasatu.com as saying Thursday that of the total 9,721 IUPs, 6,335 IUPs have already obtained the C&C status, but many are set to expire this month. ?If these (the expiring IUPs) are not renewed, possibly only around 3,000 C&C IUPs will be remaining,? he said, adding that the governors in respective provinces hold the authority in renewing the permits.

Bambang explained that governors hold the authority in revoking non-C&C IUP mining permits. He said that the governors has been given until January 2, 2017 to submit recommendation which IUP mining permits, of the remaining 3,286 IUPs which have yet to obtain the C&C status, to the ministry. IUPs failing to get the C&C status by the deadline will be revoked, he added.

The government has been struggling to clean up the massive mess in the country?s mining sector caused by the aggressive move in the past by regency and mayoralty governments in issuing IUP mining permits, causing various problems including overlapping of permits, and lack of proper documents. Many miners have also failed to pay financial obligation to the state properly. The government has delegated provincial administrations to clean up the mess by giving them authority to revoke IUPs which fail to get the C&C status. (*)