The New Mining Law Requires Mining Companies to Deposit a Reserve Resilience Fund
The Ministry of Energy and Mineral Resources (ESDM) assesses that the lack of exploration activities is often the main obstacle in efforts to increase new resources and reserves in the mineral and coal mining sector (minerba). In fact, this activity is the main foothold in maintaining the continuity of the mining business.
It is believed that this challenge can be answered by Law no. 3 of 2020 concerning Mineral and Coal Mining. In Article 112A Paragraph 1, the holder of a Mining Business Permit (IUP)/Special Mining Business Permit (IUPK) is required to provide a Minerba Resilience Reserve Fund (DKC). "The Mineral and Coal Reserve Resilience Fund as referred to in paragraph 1 is used for the discovery of new reserves," said the dictum of Article 112A Paragraph 2 based on a press release from the Ministry of Energy and Mineral Resources quoted by Kontan.co.id, Thursday (25/6). In order to trigger exploration activities and prepare Mining Business Permit Areas (WIUP), the government has prioritized granting assignment areas to the State Research Institute and/or State-Owned Enterprises (BUMN) to conduct mining investigations and research first. However, if SOEs are not interested, the area will be auctioned openly to business entities and then a selection process will be carried out in accordance with the provisions of the assignment. A business entity can apply for a proposal for an assignment area whose territory is not prepared by the government. This area can be obtained from the area of the former Contract of Work (KK) or Coal Mining Concession Work Agreement (PKP2B).
|•SOURCE•| Articles :KONTAN | Image :KOMPAS |
READ MORE
|• NATIONAL •|Build New Capital City
|• INTERNATIONAL •|Collaborating with vision SMARTFREN
|• BANKING •|Big Ambition of PT Elang Mahkota Teknologi Tbk
|• SOCIAL •|luxury car drivers tend to be arrogant
|• BUSINESS •|ID Food will Strengthen Indonesia's Food Ecosystem
0 comments: