RESUME OF
MINISTRY OF ENERGY AND MINERAL RESOURCES DECREE NO: 266.K/MB.01/MEM.B/2022
CONCERNING
Article 62A of Law No 3 of 2020 (“Mining Law”) and Article 140 of Government Regulation No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities (“GR 96/2021”) allow the possibility of expansion of Mining Business License Area/Wilayah Izin Usaha Pertambangan (“WIUP”) and Special Mining Business License Area/Wilayah Izin Usaha Pertambangan Khusus (“WIUPK”). However, the possible expansion could not be implemented due to the lack of the derivative regulation concerning the guideline for expansion. After the long-awaited finally the derivative regulation has been issued by Ministry of Energy and Mineral Resources (“MEMR”) under MEMR Decree No. 266.K/MB.01/MEM.B/2022 concerning The Guidelines for Application, Evaluation and Processing to The Expansion of Mining Business License Area And Special Mining Business License Area In The Framework Of Mineral And Coal Conservation (“MEMR Decree 266/2022”).
MEMR Decree 266/2022 is the paramount of the expansion of WIUP/WIUPK. Under the MEMR Decree 266/2022, the procedures, requirements, limitations are detailly regulated. The MEMR Decree 266/2022 is also governed the flowchart of application and the content of work plan (which will be explained below). Below are the key takeaways from MEMR Decree 266/2022:
1. Prior to applying for WIUP/WIUPK expansion, the applicant should obtain an approval of WIUP/WIUPK expansion work plan in advance from Directorate General of Mineral and Coal (“DGMC”). Such application is done under the first come first served principle provided that the application has satisfies all of the requirements.
2. Application on WIUP/WIUPK itself has to satisfy the following requirements:
3. In addition to the above requirements, the applicant has to take into account several provisions including:
4. Also, it is important to note that all submissions on the WIUP/WIUPK expansion that have been lodged prior to the effectiveness of this decree, shall be re-submitted in accordance with those requirements.
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