President issues new government regulation on mining

President Susilo Bambang Yudhoyono has finally signed government regulation (PP) No. 78/2010 on the Reclamation and Post Mining Operation, which is one of the implementing regulations of the Mining Law No. 4/2009.

The PP, signed by the President on Dec. 20, 2010, consists of 11 chapters and 54 articles.

The PP states among others that the holders of IUP/IUPK exploration permit as well as IUP/IUPK operational production permits are obliged to carry our reclamation and post-mining programs.

The IUP/IUPK exploration and operational production holders are obliged to provide reclamation and post-mining guarantee funds.

The exploration-phase guarantee funds are calculated based on reclamation plan formulated on the basis of the environmental document and specified in the exploration budget and working plan.

The reclamation and post-mining guarantee funds should be deposited in the form of time deposit accounts at state owned banks within 30 days after the minister or governor or regent/mayor has approved the working plan and budget of the IUP/IUPK holders.

The placement of the guarantee funds into a bank account does not however nullify the obligation of IUP/IUPK to carry out reclamation and post-mining programs.

If study finds that the IUP/IUPK holders fails to carry out the reclamation and post-mining programs in line with "criteria of success", the minister or governor or regent/mayor have rights to appoint a third party to cary out part or all of the reclamation and post-mining programs using the guarantee funds.

The government already issued three PP by July 2010. The three PP are respectively titled Governmental Regulation on Mining Area, Governmental Regulation on the Implementation of Mineral and Management and Supervision of Mineral and Coal Mining. (godang)