Pan Asia hails divestment regulation
Wednesday, December 24 2014 - 02:24 AM WIB
ASX-listed Pan Asia Corporation Limited (PZC) hailed Indonesian Government Regulation No 77/2014 on divestment obligation, saying it is of particular significance to its 75 percent-owned flagship Indonesian underground, high CV thermal coal project TCM in South Kalimantan.
This regulation provides that a Production Operation involving underground mining now requires a maximum 30 percent divestment to local partners (i.e. 70% foreign ownership allowable).
The timing of divestment is as per the schedule below (Category 4 is underground mining):
| Production Operation IUP/IUPK holder | Acquisition/PMA conversion year | 6th Year | 7th Year | 8th Year | 9th Year | 10th Year | 15th Year |
| Category 1 | 25% | ||||||
| Category 2 | 20% | 30% | 37% | 44% | 51% | ||
| Category 3 | 20% | 30% | 40% | ||||
| Category 4 | 20% | 25% | 30% | ||||
| Category 5 | 20% | 25% | 30% |
?After extensive campaigning and presentations in Indonesia about the long term benefits and requirements of underground mining in Indonesia, it is great to see the Government formally recognizing this in its latest mining regulation. This removes what was a significant hurdle to the necessary, long term foreign investment required for the development of long life, underground mining projects that can provide real benefit to all stakeholders in Indonesia? said Pan Asia?s CEO Alan Hopkins in a statement.
Editing by Reiner Simanjuntak