Senin, Juni 14, 2021

Delays in Development of Metal Mineral Refinery Facilities During COVID-19 to Be Subject to Administrative Sanctions

The Minister of Energy and Mineral Resources ("Minister") has recently introduced a set of guidelines on the imposition of administrative fines for any delays in the development of metal mineral refinery facilities (“Development”) during the Corona Virus Disease 2019 ("COVID-19") pandemic through the issuance of Decree No. 104.K/HK.02/MEM.B/2021 ("Decree").
Holders of Mining Business Licenses (Izin Usaha Pertambangan – "IUP") and Special Mining Business Licenses (Izin Usaha Pertambangan Khusus – "IUPK") for Metal Mineral Production Operations ("IUP and IUPK Holders") that fail to meet the required 90% percentage for the physical progress of Development since 13 April 2020 (the date upon which COVID-19 was categorized as a national disaster by the Indonesian government will have administrative fines imposed upon them in the following forms: 1) The cumulative amounts of overseas sales of metal minerals for six months during two periods of evaluation of the physical progress of Development; 2) Fines will not be imposed on any Development activities which are being impacted by the COVID-19 pandemic ("Impacted Activities") based on verification reports on the physical progress of the relevant Development ("Reports") that are drawn up by independent assessors (verifikator).
Impacted Activities encompass: 1) Procurement (i.e. fabrication and delivery); 2) Construction (i.e. mobilization of material equipment, tools and/or manpower; construction of temporary facilities; preparation of work; work execution; and completion of work and/or mechanical completion); and 2) Commissioning (i.e. mobilization of equipment, tools and/or manpower; and mobilization of commissioning materials).
Moreover, Reports should be submitted by the IUP and IUPK Holders to the Director-General of Minerals and Coal by no later than 4 July 2021 (i.e. 30 days after 4 June 2021). If IUP and IUPK Holders fail to submit Reports, then the relevant administrative sanctions will be imposed upon them.
The Decree has been in force since 4 June 2021.

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The Minister of Energy and Mineral Resources ("Minister") has recently introduced a set of guidelines on the imposition of administrative fines for any delays in the development of metal mineral refinery facilities (“Development”) during the Corona Virus Disease 2019 ("COVID-19") pandemic through the issuance of Decree No. 104.K/HK.02/MEM.B/2021 ("Decree").
Holders of Mining Business Licenses (Izin Usaha Pertambangan – "IUP") and Special Mining Business Licenses (Izin Usaha Pertambangan Khusus – "IUPK") for Metal Mineral Production Operations ("IUP and IUPK Holders") that fail to meet the required 90% percentage for the physical progress of Development since 13 April 2020 (the date upon which COVID-19 was categorized as a national disaster by the Indonesian government will have administrative fines imposed upon them in the following forms: 1) The cumulative amounts of overseas sales of metal minerals for six months during two periods of evaluation of the physical progress of Development; 2) Fines will not be imposed on any Development activities which are being impacted by the COVID-19 pandemic ("Impacted Activities") based on verification reports on the physical progress of the relevant Development ("Reports") that are drawn up by independent assessors (verifikator).
Impacted Activities encompass: 1) Procurement (i.e. fabrication and delivery); 2) Construction (i.e. mobilization of material equipment, tools and/or manpower; construction of temporary facilities; preparation of work; work execution; and completion of work and/or mechanical completion); and 2) Commissioning (i.e. mobilization of equipment, tools and/or manpower; and mobilization of commissioning materials).
Moreover, Reports should be submitted by the IUP and IUPK Holders to the Director-General of Minerals and Coal by no later than 4 July 2021 (i.e. 30 days after 4 June 2021). If IUP and IUPK Holders fail to submit Reports, then the relevant administrative sanctions will be imposed upon them.
The Decree has been in force since 4 June 2021.

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