Government Regulation No. 78/2010 concerning reclamation and post-mining

Article 2

Article 1 (1) Holders of Exploration IUP and Exploration IUPK In this Government Regulation what is meant by: are obligated to perform reclamation. 22 Business News R090809;'46-/OJ i GOVERNMENT REGULATIONS (21 Holders of Production Operations IUP and Produc- paragraph (1) letter a and paragraph (2) letter a, tion Operations IUPK are obligated to perform rec- shall at a minimum cover: lamation and post-mining. a. protection of the quality of surface water, (3) Reclamation referred to in paragraph (1) shall be ground water, sea water, and land and the air performed on terrain disturbed by exploration ac- based on standard quality or standard criteria tivities. of damages to the living environment in accor- (4) Reclamation and post-mining referred to in para- dance with provisions of statutory regulations; graph (2) shall be performed on terrain disturbed b. protection and recovery of bio-variety; by mining activities with the following system and c. guarantee on the stability and safety of closing method: rock piles. tailing pools, former mine areas. and a. Open mining; and other man-made stru ctu res; b. Underground mining. d. utilization of former mine areas in accordance with their allotment;

Article 3 e. observing locel social end culture velue s: and (1 f Performance of reclamation by Holders of Explo- f. protection of the quantity of ground water in ration IUP and Exploration IUPi<. are obligated to accordance with provisions of statutory requla- fulfill the principles of: tions. a. protection and management of mining living en- (2) Principles of work safety and health referred to in vironment; and Article 3 paragraph (1) letter b and paragraph (2) b. work safety and health. letter b. cover: (2) Performance of reclamation and post-mining by a. protection of the safety of every worker/labor; Holders of Production Operations IUP and Produc- and tion Operations IUPK are obligated to fulfill the b. protection of every worker/labor from work re- principles of: lated disease. a. protection and management of mining living en- (3) Principles of conservation of mineral and coal re- vironment; ferred to in Article 3 paragraph (2) letter c, cover: b. work safety and health; and a. Optimum mining; c. conservation of mineral and coal. b. use of an effective and efficient processing and purification method and technology

Article 4 c. management and/or utilization of marginal re- (11 Principles of the protection and management of serve, low value mineral. tailing mineral and mining living environments referred to in Article 3 low quality coal; and 23 GOVERNMENT REGULATIONS d. taking data of resources and mineral and coal shall submit application for approval of the recla- reserve not mined and processing and purifica- mation plan and post-mining plan to the Minister, tion remains. Governor, or Regent/MaYor in accordance with (4) In the event tailing mineral from remains of min- their authority. inq, processing and purification referred to in para- (2} The reclamation plan and post-mining plan referred graph (3f letter a, letter b, and letter c contain to in paragraph (11 shall be submitted concurrently wilh the submission of application for Production radioactive matters, it is obligatory to analyze the Operations IUP and Production Operations IUPK. safety of radiation for tenorm and to execute in- (:3) I he reclamation plan and post-mining plan re- tervention on the exposure of radiation from the ferred to in paragraph (1) shall be compiled based tenorm in accordance with provisions of statutory on living environment documents having been ap- regulatio ns. proved by the agency having the authority in the aspect of protection and management of the liv- CHAPTER III ing environment in accordance with provisions of RECLAMATION AND POST-MINING MECHANISM statutory regulations. Part One (4) The reclamation plan and post-mining plan re- General ferred to in paragraph (3) shall be in accordance

Article 5 with: (1) Before carrying out exploration activities, holders a. the principles referred to in Article 3; of Exploration IUP and Exploration IUPK are obli- b. mining system and methods based on feasibil- gated to compile reclamation plans based on doc- ity study; uments of the living environment in accordance c. area specific condition of Mining Business Per- with provisions of statutory regulations in the as- mit; and pect of protection and management of the living d. provisions of statutory regulations. environment. (2) The reclamation plan referred to in paragraph (1) Part Two shall be set forth in Exploration Work Plan and Reclamation Plan BUdget. Article 7 (1) The reclamation plan referred to in Article 6 shall

Article 6 be compiled for a period of five (5) years. (1) Holders of Exploration IUP and Exploration IUPK (2) The reclamation plan referred to in paragraph (1) who had completed feasibility study activities shall contain reclamation plans for each year. 24 GOVERNMENT REGULATIONS (3) In the event the age of a mine is less than five coastal area, and small islands, reclamation planning (5) years, the reclamation plan referred to in para- shall be made in accordance with provisions of statu- graph (1) shall be cornpilad in accordance with the tory regulations. mine's age. {4) neclamation plans referred to in paragraph (1), Article 9 paragraph (2), and paragraph (3) shall at a mini- Further provisions on compilation of reclama- mum contain: tion plan :;;hClII be re qulated with a Minister Regula a. land use before and after mining; tion. b. plans on the opening of land; c. reclamation program on disturbed land covering Part Three former mine areas and land outside of former Post-mining Plan mine areas that are temporary and/or perma- Article 10 nent in nature; Post-mining plan referred to in Article 6 con- d. criteria of success covers standard of success- tains: ful land arrangement, re-vegetation, civil works, a. area profile covering location and access to the and finalization; and area, ownership and allotment of land, initial color e. plans on reclamation expenses consist of direct of the environment, and other business activities costs and indirect costs. around the mine; (5) Land outside of former mine areas referred to in b. description of mining activities, covering condition paragraph (41 letter c cover: of initial reserve, mining, processing and purifica- a. piling place of closing soil; tion system and method, and supporting facilities; b. temporary piling up places and piling place for c. final color of post-mining land environmF!nt, ~nv- mine material; ering condition of remaining reserve, allotment of cv ro ada: land, morphology, surface water and ground vva d. processing and purification factory/installation; ter. and aquatic and terrestrial biology; e. buildings/installation of supporting means; d. post-mining program covering: f. office and housing; 1. reclamation of former mine area and land out- g. special harbor; and/or side of former mine area; h .Iand for the piling up and/or sedimentation of 2. maintenance of reclamation products; tailing 3. development and utilization of the community;

Article 8 and In the event reclamation is in a forest zone, 4. monitoring. 25 GOVERNMENT REGULATIONS e. Organization including schedule of post-mining (2) In the event a reclamation plan has not yet met pe rformance; the provi sion s referred to in Article 6, Article 7, f. criteria of successful post-mining; and and Article 8, the Minister, Governor, or Regent/ g. post-mining budget plan covers direct costs Mayor according to their authority shall return the and indirect costs. redrlmation plan to the holder of Production Op- erations IUP or Production Operations IUPK.

Article 11 (3) The holder of the Production Operations IUP or Holders of Exploration IUP and Exploration Production Operations IUPK shall re-submit the IUPK in the compilation of post-mining plans shall con- perfected rectamauon plan referred to in per e- sult with Government agency, provincial government graph (2) within a period of a maximum of 30 Lind/or regency/city government agencies in charge of (thirty) calendar days to the Minister, Governor, or coal and mineral mining, other related agencies, and Regent/Mayor in accordance with their authority. the community.

Article 14

Article 12 (1) A Holder of Production Operations IUP or Produc- Further provisions on procedure for the com- tion Operations IUPK is obligated to make changes pilation of plans and criteria uf succeasful post-uriuinq to a reclamation plan that had been approved as shall be regulated with a Minister Regulation. meant in Article 13 if there are changes of: a. mining system and method that had been ap- proved; CHAPll::R IV b. production capacity; APPROV AL OF RECLAMATION PLAN c. mine's age; AND POST-MINING PLAN d. land use; and/or Part One Approval of Reclamation Plan e. living environment documents thot hod been

Article 13 approved by the agency having the authority (1) In accordance with their authority, the Minister, in the aspect of protection and management of Governor, or Regent/Mayor shall provide approval the living environment in accordance with pro- on reclamation plans that had met the provisions visions of statutory regulations. referred to in Article 6, Article 7, and Article 8 (2) Changes to the reclamation plan referred to in within a period of a maximum of 30 (thirty) cal- paragraph (1) shall be submitted within a period endar days from the date of issue of Production of a maximum of 180 (one hundred and eighty) Operations IUP or Production Operations IUPK. calendar days before the next reclamation year to 26 Bu.,itl@s'iNews 8090 HOYl:-4-i;,)U! GOVERNMENT REGULATIONS the Minister. Governor. or Regent/Mayor in accor- dance with their authority shall provide approval dance with their authority. on post-mining plans that had met the provisions (3) The Minister. Governor. or Regent/Mayor in accor- referred to in Article 6, Article 10, and Article 11 dance with their authority shall provide approval within a period of a maximum of 60 (sixty) cal- on chanoes of raclamation plans that had met endar days from the date of issue of Production the provisions referred to in Article 6, Article 7, Operations IUP or Production Operations IUPK. and Article 8 within a period of a maximum of 30 (?) In the event a nost-rnininu plan has not yet met (thirty) calendar days from receiving a proposal of the provisions referred to in Article 6, Article 10, change of a reclamation plan. and Article 11, the Minic:tRr. Governor. or Regent! (4) In the event a change to a reclamation plan has Mayor in accordance with their authority shall not yet met the provisions referred to in Article 6, return the post-mining plan to the holder of Pro-

Article 7, and Article 8, the Minister, Governor, or duction Operations IUP or Production Operations Rcgcnt/Moyor in accordance with their authority IUPK. shall return the proposal for the change of rec- 13) The holder of Production Operations IUP or Pro- lamation plan to the holder of Production Opera duction Op cru tioria IUPK shall ro submit the post- tions IUP or Production Operations IUPK. mining plan referred to in paragraph (21 that had (5) The holder of Production Operations IUP or rro- been corrected within a period of a maximum of duction Operations IUPK shall re-submit the pro- 30 (thirty) calendar days to the Minister, Gover- pusal rur the change uf the reclarnation plan that nor, or Regent/Mayor in accordance with their au' had been corrected within a period of a maximum thority. of 30 (thirty) calendar days to tile Minister, Guv- ernor, or Regent/Mayor in accordance with their Article 17 authority. (1 ) Holde rs of Production Operations IUP or Produc- tion Operations IUPK have the obligation to make

Article 15 a Change to a post-mining plan if there is a Change Further provisions on procedure to provide ap- of the reclamation plan referred to in Article 14. proval for reclamation plans shall be requtateo With a (2) Changes to the post-rrurunq plan referred to III Minister Regulation. paragraph (1) shall be submitted to the Minister, Governor, or Regent/Mayor in accordance with Part Two their authority. Approval of Post-mining Plan (3) The Minister, Governor, or Regent/Mayor in ac-

Article 16 cordance with their authority shall grant approval (1) The Minister, Governor, or Regent/Mavor in aceor- on the change of post-mining plan that had met 27 GOVERNMENT REGULATIONS the provisions referred to in Article 6, Article 10, and duction Operations IUPK are obligated to perform

Article 11 within a period of a maximum of 90 reclamation and post-mining in accordance with (ninety) calendar days from the date of receiving a reclamation plans and post-mining plans until it proposal for a change of a post-mining plan. meets the criteria as being successful. 14) Amendment to the post-mining plan referred to in (2) In the performance of reclamation and post-mining paragraph (1) may only be made within a period of referred to in paragraph (1), holders of Production two (2l years at the latest before the end of min- Operations IUP and Production Operations IUPK ing activities. shall appoint officials responsible on the perfor- mance of reclamation and post-mining.

Article 18 Article 21 Fu rther provisions on procedure for the provi- Performance of the reclamation referred to in sion of approval for post-mining plans shall be regu-

Article 19 and Article 20 must be carried out within lated with a Minister Regulation. 30 (thirty) calendar days at the latest after there are no more mining business activities on the disturbed CHAPTER V land. PERFORMANCE AND REPORTING Part One Part Three Reclamation of Exploration Phase Reporting and Performance of

Article 19 Reclamation and Post-mining (11 Performance of rectamatton on land disturbed by

Article 22 exploration activities shall be carried out on land 11) Holders of Production Operations IUP and Produc- not used in production operations phase. tion Operations IUPK are obligated to submit per- (2) Land disturbed by exploration activities referred formance report on reclamation activities every to in pnruqrnph (1) covcrs drilling holes, testing year to the Minister, Governor, or Regent/Mayor wells, testing trench/ditch, and/or supporting in accordance with their authority. means. (2) In accordance with their authority, the Minister, (3) Performance of reclamation referred to in para- Governor, or Regent/Mayor shall perform evalua- graph (1) shall be carried out until it meets the tion on reclamation performance report referred to criteria as being successful. in paragraph (1) within the period of a maximum Part Two of 30 (thirty) calendar days after the receipt of a Reclamation and Post-mining of report. Production Operations Phase

Article 20 Article 23 (1) Holders of Production Operations lUP and Pro- Based on product of the evaluation referred to 28 GOVERNMENT REGULATIONS in Artir.lp. 2? paraqr aph (2), the Minister, Governor. or months to the Minister, Governor, or Regent/May- Regent/Mayor in accordance with their authority shall or in accordance with their authority. notify the level of rectemation success in writing to 12) In accordance with their authority, the Minister, the holders of Production Operations IUP and Produc- Governor, or Regent/Mayor shall make evaluation tion Operations IUPK. on the performance report of post-mining referred to in paragraph 11 f within a period of a maximum

Article 24 of 30 (thirtv) calendar days from the receipt of the In the event reclamation is in a forest zone, report. coastal area, and small islands, the evaluation of sue- cessful reclamation shall be made in accordance with provisions of statutory regulations. Article 27 Based on product of the evaluation referred

Article 25 to in Article 26 paragraph 12}, the Minister, Governor, {1) Hol ders of Production Opere tiona Iur and rro- or negent/Mayor in accordance with their authority, duction Operations IUPK are obligated to perform shall notify the level of post-mining success in writing post-mining after a part or all of mining business to the holder of Production Operations lUI-' and Pro- activities expired. duction Operations IUPK. (2} In the event all mining business activities ended before the period stipulated in a post-mining plan, Article 28 the holder of Production Operations IUP and Pro- Further provisions on procedure for reporting duction Operations IUPK is obligated to perform and evaluation of reclamation and post-mining shall post-mining. be regulated with a Minister Regulation. (3) Post-mining referred to in paragraph 11) and para- graph (2) must be carried out within a period of a CHAPTER VI maximum of 30 (tbirtv] calendar days after a part nECLAMATION AND POST-MINING GUARANTEE or all of the mining business activities ended. Part One General

Article 26 Article 29 (1) Holders of Production Operations IUP and Pro- (1) Holders of IUP and IUPK are obligated to provide: duction Operations IUPK are obligated to submit a. reclamation guarantee; and performance report of post-mining every three (3} b. Post-mining guarantee. f. -I- (>')i' I 29 GOVERNMENT REGULATIONS (2) Reclamation guarantee referred to in paragraph (1 ) b. time deposit in a government bank; letter a consist of: c. bank guarantee in a government bank or nation- o.rcclamation guarantee for Exploration phase; al private bank; or and d. accounting reserve. b.rectarnatton guarantee fUI Prouuution Opera- (3) Placement of the reclamation OlJar:'lntpp referred to in paragraph (1) shall be made within a period tions phase. of a maximum of 30 (thirty) calendar days from the date the reclamation plan is approved by the Part Two Minister, Governor, or Regent/Mayor in accor Reclamation Guarantee dance with their authority.

Article 30 III Exploration phase reclamation guarantee referred

Article 32 to in Article 29 paragraph (2) letter a is stipulated Placement of reclamation guarantee does not pursuant to the reclamation plan compiled based eliminate the obligation of the holder of IUP and IUPK on living environment documents and set forth in to perfo rm reclamation. Exploration Work Plan and Budget. (2) The reclamation guarantee referred to In para-

Article 33 graph (1) shall be deposited in a government bank If based on product of evaluation on perfor- in the form of time deposit. mance report of reclamation shows that the perfor- (3f Placement of the reclamation guarantee referred mance of reclamation does not meet the criteria as to in paragraph (Z) shall be made within a period being successful, the Minister, Governor, or Regent/ of a maximum of 30 (thirty) calendar days from Mayor in accordance with their authority may stipu- the date the exploration Work Plan and Hudqet late a third party to perform a part or all reclamation was approved by the Minister, Governor, or Re- activities by using the reclamation guarantee. gent/Mayor in accordance with their autho rity.

Article 34

Article 31 (1) In the event reclamation guarantee can not cover (1 f Production Operations phase reclamation guaran- the completion of reclamation, shortage of fund tee referred to in Article 29 paragraph 12l letter b for the completion of reclamation is the responsi- is stipulated pursuant to the reclamation plan. bility of the IUP or IUPK holder. (2) The reclamation guarantee referred to in para- (2) In the event there is an overpayment of gua rantee graph (1) can be in the form of: from the fund required for the completion of rec- a. joint account in a government bank; lamation, the overpaid fund may be liquidated by 30 GOVERNMENT REGULATIONS the IUP or IUPK holder after receiving an approval eliminate the obligation of a holder of Production Op- from the Minister, Governor, or Regent/Mayor in erations IUP and Production Operations IUPK to per- accordance with their authority. form post-rnininq.

Article 35 Holders of IUP or IUPK may submit applica- Article 39 tion for the Iiquidation or relerlse of rer.lamation guar- If an evaluation of the performance of post- antee to the Minister, Governor, or Regent/Mayor in mining shows that post-mining activities did not meet accordance with their authority based on r eolarnatinn the criteria as successful, the Minister, Goverrror , 01 level of success. Regent/Mayor in accordance with their authority may stipulate a third party to carry out a part or all of the

Article 36 post-mining activities by using post-mining guaran- Further provisions on reclamation guarantee tee. shall be regulated with a Minister Regulation.

Article 40 Part Three In the event post-mining guarantee can not Post-mining Guarantee cover the completion of post-mining, shortage of fund

Article 37 for the completion of post-mining shall be the respon- (') Post-mining guarantee referred to in AI ucle 29 sibility of the holder of Production Operations IUP or paragraph (ll letter b shall be stipulated in accor- Production Operations IUPK. dance With post-mining plan. (2l The post-mining guarantee referred to in para- Artir.le 41 graph (1) shall be deposited each year In the form of time deposit in a government bank. In the event mining business activities ended (3) Placement of the post-mining guarantee referred before the period stipulated in a post mining plan, the to in paragraph (2) shall be made within a period holder of Production Operations IUP or Production of a maximum of 30 (thirty) calendar days from Operations IUPK is obliqated to provide pust-miuinq the date the post-mining plan is approved by the guarantee in accordance with the stipulated amount. Minister, Governor, or Regent/Mayor In accor- Article 42 dance with their authority. Holders of Production Operations IUP and Production Operations IUPK may submit application

Article 38 for the liquidation of post-mining guarantee to the Placement of post-mining guarantee does not Minister, Governor, or Regent/Mayor in accordance 31 GOVERNMENT REGULATIONS their authority by attaching a Post-mining Budget Plan Article 46 and Program. Further provisions on reclamation and post- rnininq in people mining areas shall be regulated with a regency/city regional regulation guided by this Gov- Artidf! 4:1 ernment Regulation. Further provisions on post-mining guarantee shall be regulated with a Minister Regulation. CHAPTER VIII RETURN OF RECLAIMED LAND AND POST-MINING LAND CHAPTER VII Article 47 RECLAMATION AND POST-MINING (1) Holders of IUP and IUPK have the obligation to ACTIVITIES FOR IPR HOLDERS return reclaimed land to the rightful party in accor-

Article 44 dance with statutory regulations through the Min- (1) Prior to issuing IPR on people mining areas, re- ister, Governor, or Regent/Mayor in accordance gency/city governments shall compile reclamation with their authority. plan and post-mining plan for each people mining (2~ Holders of IUP and IUPK are entitled to submit ap- areas. plication to postpone the return of land referred to (2l The reclamation plan and post-mining plan referred in paragraph (1) either a narr or all of it to the Min- to in paragraph (ll shall be compiled based on liv- ister, Governor, or Regent/Mayor in accordance ing enviro nment documents that was approved with their authority if the reclaimed land is still by the agency having the authority in accordance required for mining. with provisions of statutory regulations in the as-

Article 48 pect of protection and management of the living Holders of Production Operations IUP and environment Production Operations IUPK that had completed post-

Article 45 mining have the Obligation to return post-mining land ( 1) The Regent/Mayor stipulates reclamation plans to the rightful party pursuant to statutory regulations and post-mining plans referred to in Article 44 for through the Minister, Governor, or Regent/Mayor in IPR holders. accordance with their authority. (2) IPR holders and the Regent/Mayor are obligated to carry out reclamation and post-mining in accor- Article 49 dance with the reclamation plan and post-mining Further provisions on procedure to return re- plan referred to in paragraph (1). claimed land and land that had been completed as 32 GOVERNMENT REGULATIONS of its post-rnininq activities shall be regulated with a Article 51 Minister Regulation. (1) Further provisions on procedure for the imposing of administrative sanction to holders of IUP and CHAPTER IX IUPK as meant in Article 50 shall be regulated ADMINiSTRATIVE SANCTIONS wi rh a Minis ter Regulation. (2) Further provisions on procedure for the impos-

Article 50 ing ot administrative sanctions to IPR holders as (1) Holders of IUP, IUPK, or IPR violating provisions meant in Article 50 shall be regulated with a re- referred to in Article 2 paragraph (1} or paragraph gency/city regional regulation. (2}, Article 3 paragraph (1) or paragraph (2), Ar- ticle 4 paragraph i41, Article 5 paragraph 111, Ar- ticle 14 paragraph (11, Article 17 paragraph (11, CHAPTER X

Article 20 paragraph (1), Article 21, Article 22 TRANSiTIONAL PROVISIONS paragraph (11, Article 25 paragraph (11, paragraph

Article 52 ILl, or paragraph {j), Article 26 paragraph (I). Ar- Reclamation plans and/or post-mining plans ticle 29 paragraph (1), Article 41, Article 45 para- submitted by holders of Work Contract, Coal Mining graph (2), Article 47 paragraph i1)' or Article 48 Exploitation Work Agreement (Karya Pengusahaan), shall be imposed to an administrative sanction. and holders of IUP that had received approval from 121 The administrative sanction referred to in para- the Minister, Governor, or Regent/Mayor in accor- graph III can be in the form of: dance with their authority before this Government a. written warning; Regulation comes to effect, is declared to be still ap- b t arrmorarv cnss ation of activities: arid/or plicable, and it is obligatory to adjust the reclamation c. revocation of IUP, IUPK, or IPR. plans and/or post-mining plans pursuant to provisions (3) Holder's of IUP, IUPK, or IPR impo sed to adminis- of this Government Regulation withln a period of a trative sanction in the form of revocation of IUP, maximum of three (31 months from the date this Gov- IUPK, or IPR as meant in paragraph (2) letter c, are ernment Regulation comes to effect. not eliminated as of their obligations to perform reclamation and post-mining activities. Article 53 (4) The administrative sanctions referred to In para- i 1) Holders of Work Contract, Coal Mining Exploita- graph (1} will be imposed by the Minister, Gov- tion Work Agreement, and holders of Exploration ernor, or Regent/Mayor in accordance with their IUP not yet depositing reclamation guarantee be- fore this Government Regulation comes to effect, authority. 33 GOVERNMENT REGULATIONS are obligated to deposit the reclamation guarantee For public cognizance, this Government Regu- in accordance with provisions of this Government lation shall be announced in the State Gazette of the Regulation within a period of a maximum of three Republic of Indonesia. (3) months from the date this Government Regula- tion comes to effect. Stipulated in Jakarta (2) Holders of Work Contract, Coal Mining Exploita- on December 20, 2010 tion Work Agreement, and holders of Production PRESIDENT OF THE REPUBLIC OF INDONESIA, Operations IUP not yet depositing reclamation sgd. guarantee and post-mining guarantee in accor- DR. H. SUSILO BAMBANG YUDHOYONO dance with provisions of this Government Regula- Enacted in Jakarta tion, are obligated to deposit reclamation guaran- on December 20, 2010 tee and post-mining guarantee within a period of MINISTER OF LAW AND HUMAN RIGHTS a maximum of three (3) months from the date this REPUBLIC OF INDONESIA, Government Regulation comes to effect. sgd. PATRIALIS AKBAR CHAPTER XI CLOSING PROVISIONS STATE GAZETTE OF THE REPUBLIC OF INDONESIA

Article 54 YEAR 2010 NUMBER 138 This Government Regulation commences to come to effect from the date of enactment. (D) 34