Implementing Government Regulation on Reclamation and Post-Mining

Government Regulation No. 78 of 2010 on Reclamation and Post-mining (‘Regulation’) has been issued to implement Article 101 of Law No. 4 of 2009 on Mineral and Coal Mining.

Under Article 2 (1) exploration mining permit holders (Izin Usaha Pertambangan/IUP Eksplorasi) and exploration special mining permit holder are obliged to carry out reclamation. Similarly, under Article 2 (2), production mining permit holders and production special mining permit holders are also obliged to carry out reclamation as well as other post-mining activities.

As set out in Article 3 of the Regulation, the implementation of reclamation and post-mining has to be in line with the principles of protection and environmental management of mining, health and safety, and the conservation of minerals and coal.

Under Article 7, the reclamation plan is arranged for a five-years term. If the mining lifetime is less than five years, the reclamation plan is adjusted to the lifetime. The details regarding arrangement of reclamation plans will be addressed by further ministerial regulation (as elaborated on in Article 9).

The post-mining plan has to include the items elaborated on in Article 10. The arrangement of a post-mining plan and success criteria, will also be further addressed by future ministerial regulation (as elaborated on in Article 12)

The minister, governor, regent/mayor, will give approval of reclamation plans that meets the requirements within a 30 days period after the issuance of an IUP or IUPK Production Operation.

Under Article 14, the holders of IUP Production Operation or IUPK Production Operation have to change their reclamation plan if certain changes occur.

On the post-mining plan, the minister, governor, regent/mayor, will give approval 60 days after the issuance of the IUP Production Operation and IUPK Production Operation. The IUP and IUPK holders also have to change their post-mining plan if certain amendments occur, as per Article 14.

Further details on the approval of reclamation and post-mining plans will be regulated by ministerial regulation (as elaborated on in Article 15 and 18).

Under Articles 21 and 25, the reclamation and the post-mining have to start within 30 days from the end of mining operations.

Holders of IUP and IUPK of Production Operation are obliged to give an annual report on reclamation to the related minister, governor, and regent/mayor (as elaborated on in Article 22). On the post-mining, the report has to submitted every three months (as elaborated on in Article 26).

Under Article 29 holders of mining permits and special mining permits are obliged to provide a security deposit for reclamation and post-mining. Security deposits for reclamation are divided into: a security deposit for the exploration phase, and a security deposit for production phase. And have to be paid within 30 days of the reclamation and post-mining plans receiving approval. However, the security deposit does not negate the obligation to implement the reclamation and post-mining by the permit holders according to Articles 32 and 38, and does not act as a limit on liability according to Articles 34 and 40.

Administrative sanctions are set out in Article 50, and include warning letters, suspension of operations, and permit revocation.

According to Article 53 permit holders will have to comply with the provisions of the Regulation within 3 months (i.e. by 20 March 2011).

The Regulation has been in force since 20 December 2010.