Two of the four delayed, anticipated implementing regulations to Law No. 4 of 2009 on Mineral and Coal Mining (Mining Law) have been issued, including Government Regulation No. 22 of 2010 on Mining Zones (Mining Zone Regulation), which provides procedures around the classification of mining zones, and further regulations for each type of zone. In so doing, it provides procedures around how to: determine the classification for a mining zone; research and conduct a potential inventory of a mining zone, and; manage information on a mining zone using a Geographic Information System. Meanwhile, it specifies related roles for a state or regional research and examination body.
The Mining Law defines a ‘mining zone’ as an area that (a) holds mineral or coal extractive potential, (b) not linked to government restrictions (i.e., is allocated for mining), and (c) is part of the national spatial plan. The Mining Zone Regulation elaborates on (a) of the Mining Law’s definition, setting these criteria for any mining zone: (i) indication of mineral of mineral/coal-carrying rocks, and/or (ii) potential liquid and/or solid mining resources.
The three main zone classifications are (1) Mining Business Zone (Wilayah Usaha Pertambangan/WUP), (2) Community Mining Zone (Wilayah Pertambangan Rakyat/WPR), and (3) State Reserves Zone (Wilayah Pencadangan Negara/WPN).
The Mining Law allows the government to classify a mining zone after coordinating with regional governments, and consulting with the House of Representatives. The basis for which areas can be classified as a particular sort of zone is based on the state-wide Mining Zone Plan, which is jointly produced by the Minister of Energy and Mineral Resources, governors, and regencies/mayors after a process of inventory and research. The Mining Zone Plan - and the Zone classifications it entails - will be reviewed at least every 5 years. In a process detailed by the Regulation, the research and examination tasks can be assigned to a state or regional research and examination body by the Minister or governor.
The authority to determine both Mining Business and State Reserves Zones (WUP, and WPN) is held by the Minister of Energy and Mineral Resources; regents and mayors hold the authority to determine Community Mining Zones (WPR) - provided they meet the criteria set out by the Mining Law and Zone Regulation. In all cases, the estimated inventory of extractable resources within an area will be a principal consideration underpinning a zone’s classification.
The regulated aspects of a Mining Business Zone (WUP) are provided in Article 20 (2) of the Mining Zone Regulation, including: they may not overlap with other types of mining zones, must be allowed by the regional spatial plan, and must contain mineral, coal, or energy resources.
Within a WUP, Licensed Mining Business Zones (‘WIUP’) - zones that are granted to holders of Mining Business Licenses (‘IUP’) - must be established before extractive activities can get underway. There can be several (or just one) WIUP in a single WUP: that depends on the density of the local population, along with the location. Further details are provided in Article 22 (1) of the Mining Zone Regulation, and Article 18 of the Mining Law.
Criteria for Community Mining Zones are provided by Article 26 (2) of the Mining Zone Regulation, but are also regulated (in a very similar manner) under Article 22 of the Mining Law. Additional criteria provided by the Regulation: they cannot overlap with other types of mining zones, and require that the area be allocated for mining activities under the regional spatial plan.
Beyond considering the area’s inventory of potential resources and other strategic factors, criteria for the classification of a State Reserves Zone are stipulated in Article 29 (2) of the Regulation. As is detailed in the Mining Law, Reserves can be converted into Special Mining Business Zones (‘WUPK’) and corresponding Special Mining Business License Zones (‘WIUPK’). Any such conversions will be made on the basis of strategic considerations. The licensing of a WIUPK will be addressed by separate Government Regulation.
Within 3 months of the issuance of this Regulation, all mining areas that have been granted to holders of regional mining licenses and mining concessions must be classified under WUP and WIUP, whereas any area granted to holders of work contracts and coal mining exploitation arrangements need only conform to WUP.
Any current implementing regulations relating to Mining Zones continue to be valid, so long as they do not contradict this Regulation’s provisions.
The Mining Zone Regulation has been in force since 1 February 2010.
Two of the four delayed, anticipated implementing regulations to Law No. 4 of 2009 on Mineral and Coal Mining (Mining Law) have been issued, including Government Regulation No. 22 of 2010 on Mining Zones (Mining Zone Regulation), which provides procedures around the classification of mining zones, and further regulations for each type of zone. In so doing, it provides procedures around how to: determine the classification for a mining zone; research and conduct a potential inventory of a mining zone, and; manage information on a mining zone using a Geographic Information System. Meanwhile, it specifies related roles for a state or regional research and examination body.
The Mining Law defines a ‘mining zone’ as an area that (a) holds mineral or coal extractive potential, (b) not linked to government restrictions (i.e., is allocated for mining), and (c) is part of the national spatial plan. The Mining Zone Regulation elaborates on (a) of the Mining Law’s definition, setting these criteria for any mining zone: (i) indication of mineral of mineral/coal-carrying rocks, and/or (ii) potential liquid and/or solid mining resources.
The three main zone classifications are (1) Mining Business Zone (Wilayah Usaha Pertambangan/WUP), (2) Community Mining Zone (Wilayah Pertambangan Rakyat/WPR), and (3) State Reserves Zone (Wilayah Pencadangan Negara/WPN).
The Mining Law allows the government to classify a mining zone after coordinating with regional governments, and consulting with the House of Representatives. The basis for which areas can be classified as a particular sort of zone is based on the state-wide Mining Zone Plan, which is jointly produced by the Minister of Energy and Mineral Resources, governors, and regencies/mayors after a process of inventory and research. The Mining Zone Plan - and the Zone classifications it entails - will be reviewed at least every 5 years. In a process detailed by the Regulation, the research and examination tasks can be assigned to a state or regional research and examination body by the Minister or governor.
The authority to determine both Mining Business and State Reserves Zones (WUP, and WPN) is held by the Minister of Energy and Mineral Resources; regents and mayors hold the authority to determine Community Mining Zones (WPR) - provided they meet the criteria set out by the Mining Law and Zone Regulation. In all cases, the estimated inventory of extractable resources within an area will be a principal consideration underpinning a zone’s classification.
The regulated aspects of a Mining Business Zone (WUP) are provided in Article 20 (2) of the Mining Zone Regulation, including: they may not overlap with other types of mining zones, must be allowed by the regional spatial plan, and must contain mineral, coal, or energy resources.
Within a WUP, Licensed Mining Business Zones (‘WIUP’) - zones that are granted to holders of Mining Business Licenses (‘IUP’) - must be established before extractive activities can get underway. There can be several (or just one) WIUP in a single WUP: that depends on the density of the local population, along with the location. Further details are provided in Article 22 (1) of the Mining Zone Regulation, and Article 18 of the Mining Law.
Criteria for Community Mining Zones are provided by Article 26 (2) of the Mining Zone Regulation, but are also regulated (in a very similar manner) under Article 22 of the Mining Law. Additional criteria provided by the Regulation: they cannot overlap with other types of mining zones, and require that the area be allocated for mining activities under the regional spatial plan.
Beyond considering the area’s inventory of potential resources and other strategic factors, criteria for the classification of a State Reserves Zone are stipulated in Article 29 (2) of the Regulation. As is detailed in the Mining Law, Reserves can be converted into Special Mining Business Zones (‘WUPK’) and corresponding Special Mining Business License Zones (‘WIUPK’). Any such conversions will be made on the basis of strategic considerations. The licensing of a WIUPK will be addressed by separate Government Regulation.
Within 3 months of the issuance of this Regulation, all mining areas that have been granted to holders of regional mining licenses and mining concessions must be classified under WUP and WIUP, whereas any area granted to holders of work contracts and coal mining exploitation arrangements need only conform to WUP.
Any current implementing regulations relating to Mining Zones continue to be valid, so long as they do not contradict this Regulation’s provisions.
The Mining Zone Regulation has been in force since 1 February 2010.