Bill on Mineral and Coal Mining - A New Regulatory Framework

The Bill on Mineral and Coal Mining has recently been forwarded by the President to the House of Representatives (“DPR”) for debate. It is expected that this Bill will pass into law without any controversy. The Bill has been drafted to overcome the deficiencies in the current regulatory framework, particularly Law No. 11 of 1967 on Basic Mining Provisions (the “Mining Law”). The development of the mineral and coal mining sectors requires that there be specific legislation in place to address and regulate the issues paramount to these endeavors which are considered to be separate from oil and gas, geothermal, and ground water reserves. The primary purpose of the Bill is to set out provisions that will facilitate the efficient, transparent, competitive, environmentally friendly exploitation of these natural resources to the greatest possible benefit of the community as a whole.