South Sumatra issues 300 mining licenses

South Sumatra administration has so far issued 300 mining business licenses (IUP) with most the concessions being located both in Lahat and Muara Enim regencies, an official has said.

The administration?s unit head of energy and mining affairs Robert Heri said that the office had also withdrawn or cancelled hundreds of mining permits that violated the existing regulations in the province, mainly related to mining business license.

?We have emphasized that all mining companies operating in South Sumatra should upgrade its mining rights (KP) to manage mining business license,? he said as quoted by Bisnis Indonesia.

The 2009 Mining Law regulates an IUP is to be issued by either local administration or central government depending on the location of proposed mine area.

The governor would issue IUP where the mining areas cover more than one regency but is within one province.

He said that South Sumatra Governor Alex Noerdin has sent letters to the regents and mayors in the province to remind them on the Government Regulation No 22 and No 23 regarding the guidelines on mineral and coal mining business.

Robert said that the office had completed the data on mining companies running business on exploitation and production in the province. (*)