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Background

An exploration IUP is a permit granted for general investigation, exploration and feasibility studies in the context of mining. According to Article 29 of Government Regulation no. 23/2010 concerning the Implementation of Mineral and Coal Mining Business Activities (“PP 23/2010”), an exploration IUP is granted based on applications from business entities, cooperatives and individuals who have obtained a Mining Business Permit Area (WIUP). In the case of exploration and feasibility study activities, the holder of an exploration IUP obtaining extracted minerals or coal is obliged to report it to the IUP grantor.

Requirements for Obtaining an Exploration IUP

Article 23 PP 23/2010 stipulates that the requirements for an Exploration IUP include the following requirements:

a. Administrative;
b. Technical;
c. Environment; and
d. Financial

A. The administrative requirements referred to in letter a for business entities include:

a. For metal mineral and coal Exploration IUP:

1. application letter;

2. composition of the board of directors and a list of shareholders; and

3. domicile certificate.

b. For non-metal mineral exploration IUP from rock:

1. letter of application;

2. profile of the business entity;

3. deed of establishment of a business entity engaged in mining business which has been legalized by the competent official;

4. tax identification number;

5. composition of the board of directors and a list of shareholders; and

6. domicile certificate.

The administrative requirements as referred to in letter a for cooperatives include:

a. For metal mineral and coal Exploration IUP:

1. letter of application;

2. composition of management; and

3. domicile certificate.

b. For non-metal mineral and rock Exploration IUP:

1. letter of application;

2. cooperative profile;

3. deed of establishment of a cooperative engaged in the mining business which has been legalized by the competent official;

4. tax identification number;

5. composition of management; and

6. domicile certificate.

Administrative requirements as referred to in letter a for individuals, include:

a. For metal mineral and coal Exploration IUP:

1. letter of application; and

2. domicile certificate.

b. For non-metal mineral and rock Exploration IUP:

1. letter of application;

2. identity card;

3. tax identification number; and

4. domicile certificate.

Administrative requirements as referred to in letter a for firm companies and limited partnership companies include:

a. For metal mineral and coal Exploration IUP:

1. letter of application;

2. composition of management and list of shareholders; and

3. certificate

b. For non-metal mineral exploration IUP from rock:

1. letter of application;

2. company profile;

3. deed of establishment of a company engaged in mining business;

4. tax identification number;

5. composition of management and list of shareholders; and

6. domicile certificate.

B. Technical requirements as referred to in letter b for Exploration IUP, include:

1. Curriculum vitae and statement letter from mining and / or geological personnel with at least 3 (three) years experience;

2. a map of WIUP equipped with geographic coordinates of latitude and longitude in accordance with the national geographic information system provisions,

C. The environmental requirements as referred to in letter c for an Exploration IUP include a statement to comply with the provisions of laws and regulations in the field of environmental protection and management.

D. The financial requirements as referred to in letter d for an Exploration IUP, include:

1. proof of placement of guarantee on the seriousness of the exploration activities; and

2. proof of payment of price compensation value for data and information on the auction results of metal mineral or coal WIUP in accordance with the bid value or proof of payment of area reserve fees and payment for printing of maps of non-metal mineral or rock WIUP at the request of the area.