In May 2018, the Minister of Energy and Mineral Resources (“MEMR”) promulgated MEMR Regulation Number 26 of 2018 concerning Implementation of Good Mining Practices and Oversight of Mineral and Coal Mining (“MEMR Regulation 26/2018“) as a implementing regulation of some articles of legislation related to the implementation of good mining practices and oversight of mineral and coal mining, some of which are Article 95 letter a and Article 96 of Law Number 4 of 2009 concerning Mineral and Coal Mining.
The good mining practices are specifically grouped based on the types of activities carried out by several holders of Mining Business Licenses as follows:
- For the holders of Exploration Mining Business License (IUP Eksplorasi), Production-Operation Mining Business License (IUP-OP) and Production-Operation Special Mining Business License (IUPK), the good mining practices include the implementation of the following aspects: a) mining technical; b) Mineral and Coal conservation; c) mining occupational safety and health; d) mining operations safety; e) environmental management of mining, reclamation and post-mining, and post-operation; and f) utilization of technology, engineering capabilities, design, development, and application of mining technology.
- For the holders of IUP-OP specifically for processing and or refining, the management of the business of processing and/or refining includes the implementation of the following aspects: a) marketing; b) finance; c) data management; d) utilization of goods, services and technology; e) development of mining technical workforce; f) social and environmental responsibility; and g) the amount, type and quality of the results of the processing and/or refining business.
- For the holders of Mining Service Business License (IUJP), the good mining services practices include: a) environmental management efforts, mining safety, Mineral and Coal conservation, and mining techniques in accordance with their business fields; and b) the obligation to appoint operational responsibility as the highest leader in the field.
- Lastly, the holders of IPR or the People’s Mining License must implement the GMP and mining business management in accordance with its activities.
The abovementioned license holders who do not comply with or violate the regulation will be subject to administrative sanctions in the form of: written warnings, temporary termination of part or all business activities and/or revocation of license(s).
In addition, when this MEMR Regulation 26/2018 Regulation came into force, there are several MEMR Regulations and MEMR Decrees which are revoked, as stipulated in Article 60 of ESDM 26/2018 Ministerial Regulation.
To read MEMR Regulation 26/2018, please click [THIS LINKS].
