How to Get a Rock Mining Business Permit?

Mining activities in Indonesia have been clearly regulated in Law No. 4 of 2009 jo. 3 of 2020 jo. 11 of 2020. Even the details of the implementation of the law are revealed in the form of PP or government regulations. Precisely in PP No. 23 of 2010 in conjunction with 24 of 2012 in conjunction with 1 of 2014 in conjunction with 1 of 2017 regarding the implementation of mining business activities.

5 GROUPS OF MINING COMMODITIES IN PP NO. 23 OF 2010

Based on government regulation no. 23 of 2010 at least grouping mining commodities into 5 as follows:

Radioactive Minerals
Radioactive mineral mines consist of radium, thorium and uranium.
Metal Minerals
For metal mineral mining consists of gold and copper mining.
Non-Metal Minerals
Examples of nonmetallic minerals are diamond and bentonite
Rock
Among them there are andesite, clay, backfill sand, river pebbles and so on.
Coal
Coal consists of aspar rock, peat and asphalt rock.
Currently mining activities are better known as metal mineral commodity mining. Among the metallic minerals above, gold is one of the most popular. It is important for mining companies to obtain Mining Business Permits to start their business activities.

PROCEDURE FOR GRANTING MINING BUSINESS PERMITS BASED ON GOVERNMENT REGULATION NO. 23 OF 2010

IUP or the granting of a mining business permit based on PP no 23 of 2010, obtained by way of a regional application.

The Gold Mining Business Permit is granted by the Minister of Energy and Mineral Resources, the Governor or the Regent. This is of course in accordance with its authority based on the application submitted. This business license itself is obtained through 2 stages, namely:


1. Granting of WIUP Rock

Business entities or individuals must apply to the region to obtain WIUP. The application is submitted to the Minister, Governor or Mayor in accordance with the authority they have. Before a WIUP is granted, the Minister is required to obtain a recommendation from the governor.

Meanwhile, the governor must obtain a recommendation from the regent or mayor. Before applying for a WIUP, all requirements must be met.

If all the requirements are met, within 10 working days a decision on the acceptance or rejection of the proposed WIUP application will be issued.

The acceptance decision will be accompanied by the submission of a complete WIUP map with boundaries and coordinates of the WIUP. Otherwise, the decision to refuse will be conveyed in writing. Usually the decision will be given to the WIUP applicant complete with the reasons for the refusal.

2. Granting of IUP Rock

Mining business permits for gold and other rocks basically consist of Mining Business Permits (IUP) for Exploration and Mining Business Permits (IUP) for Production Operations. As for the requirements to get the two IUPs above, you must meet administrative, technical, environmental and financial requirements.

THREATENING CRIMINAL SANCTIONS IF YOU DON'T HAVE A MINING BUSINESS LICENSE

Sanctions regarding violation of this business license are regulated in Law No. 4 of 2009 which is an article on illegal mining. The sanctions are:
Any person or business entity that conducts a mining business without having an IUP will be subject to imprisonment for at least 10 years. In addition, you have to pay a maximum of ten billion rupiah.
Any person or holder of a production operation IUP that utilizes, processes, transports or sells minerals and coal that is not an IUP holder will be subject to a maximum imprisonment of 10 years. In addition, they must pay a fine of at most ten billion rupiahs.
Any person or business entity that interferes with mining business activities from a person who has an IUP that has fulfilled all the requirements will be sentenced to a maximum of 1 year in prison or pay a fine of at least one hundred million rupiah.
Anyone who issues an IUP that is not in accordance with the provisions of the Act and then abuses his/her authority will be subject to sanctions. The sanction is a maximum imprisonment of 2 years. Plus you have to pay as much as two hundred million rupiah. The party entitled to impose administrative sanctions on the IUP holder is the Minister, Governor, Regent or Mayor. The provisions regarding the imposition of sanctions have all been regulated in the provisions of the Law in the form of a written warning, temporary business termination or revocation of an IUP.

MAKE IT EASY TO GET A GOLD AND OTHER ROCK MINING BUSINESS LICENSE WITH DSLA LAW FIRM

DSLA Law Firm as one of the top law firms in Indonesia. We are able to assist and provide a smart legal approach to ensure the ease of obtaining IUPs and business continuity in this mining sector.

We also have extensive knowledge and networks to make it easier to assist business actors in the field of natural resources and energy management. For this reason, for those of you who need a mining law expert to obtain an IUP, please contact DSLA Law Firm.

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