Regulation No. 7/2014 concerning the Reclamation and post-mining in mineral and coal mining business activity

Article 9, Article 12, Article 15, Article 18, Article 4. Government Regulation Number 76 Year 2008 28, Article 36, Article 43, Article 49, and Article 51 on Forest Rehabilitation and Reclamation (Stat- of Government Regulation Number 78 Year 2010 on ute Book of the Republic of Indonesia Year 2008 Reclamation and Post Mining, it is necessary to stipu- Number 201, Supplement to Statute Book of the late a regulation of the Minister of Energy and Mineral Republic of Indonesia Number 4947); Resources on Reclamation and Post Mining in Mineral 5. Government Regulation Number 23 Year 2010 on and Coal Mining Business Activity; the Execution of Mineral and Coal Mining Busi- ness Activity (Statute Book of the Republic of In- In view of: donesia Year 2010 Number 29, Supplement to 1. Law Number 4 Year 2009 on Mineral and Coal Statute Book of the Republic of Indonesia Number Mining (Statute Book of the Republic of Indone- 5111) as already amended twice and the latest sia Year 2009 Number 4, Supplement to Statute by Government Regulation Number 1 Year 2014 Book of the Republic of Indonesia Number 4959); (Statute Book of the Republic of Indonesia Year 2. Law Number 32 Year 2009 on Environmental 2014 Number 1, Supplement to Statute Book of Protection and Management (Statute Book of the the Republic of Indonesia Number 5489); Republic of Indonesia Year 2009 Number 140, 6. Government Regulation Number 55 Year 2010 Supplement to Statute Book of the Republic of on the Fostering and Supervision over the Imple- Indonesia Number 5059); mentation of Mineral and Coal Mining Business 20 i Business News 8648/ 1-2-2015 GOVERNMENT REGUI /MONS Management (Statute Book of the Republic of In- REGULATION OF THE MINISTER OF ENERGY AND donesia Year 2010 Number 138, Supplement to MINERAL RESOURCES ON RECLAMATION AND Statute Book Of the Republic of Indonesia Number POST MINING IN MINERAL AND COAL MINING BUSI- 5142); NESS ACTIVITY 7. Government Regulation Number 78 Year 2010 on Reclamation and Post Mining (Statute Book of CHAPTER I the Republic of Indonesia Year 2010 Number 85, GENERAL PROVISION Supplement to Statute Book of the Republic of Article 1 Indonesia Number 5172); Referred to in this regulation as: 8. Presidential Decree Number 59/P Year 2011 dat- 1. Reclamation shall be an activity executed during ed October 18, 2011; the phase of mining buisness to arrange, restore 9. Regulation of the Minister of Energy and Mineral and improve the quality of environment and eco- Resources Number 18 Year 2010 on Organization system so as to be able to fuction again in accor- and Working Mechanism of the Ministry of En- dance with the allocation thereof. ergy and Mineral Resources (State Gazette of the 2. Post-Mining Activity hereinafter called Post Min- Republic of Indonesia Year 201 0 Number 552) as ing shall be a planned, systematic and sustainable already amended by Regulation of the Minister of activity after the mining business activity ends Energy and Mineral Resources Number 22 Year partly or wholly in order to restore the function of 201 3 (State Gazette of the Republic of Indonesia natural environment and social function according Year 2013 Number 1022); to local condition in the whole mining area. 10. Regulation of the Minister of Energy and Mineral 3. Mining shall be a part of or the whole phase of ac- Resources Number 02 Year 2013 on Supervision tivity in the framework of mineral or coal survey, over the Implementation of Mining Business Man- management and exploitation, covering general agement Executed by Provincial Governments and survey, exploration, feasibility study, construc- Regency/Municipal Governments (State Gazette tion, mining, processing and refinery, hauling and of the Republic of Indonesia Year 2013 Number sales as well as post mining activity. 78); 4. Mineral shall be inorganic compound formed in the nature, which has specified physical and chemical DECIDES: characteristics as well as has regular crystal com- position or combination thereof that forms rocks, To stipulate: either disintegrated or integrated. Business News 8648/1-2-2015 121 5. Coal shall be sedimen of carbonized organic corn- I 12. Production Operation shall be a phase of mining pound which is formed naturally from rests of business activity, covering construction, extrac- plants. tion, processing, refinery, including hauling and 6. IUP Exploration shall be a business license issued sales as well as environmental impact controlling to execute phases of general survey, exploration instrument in accordance with result of feasibility and feasibility study. study. 7. IUPK Exploration shall be a business license is- 13. Extraction shall be a part of mining business ac- sued to execute phases of general survey, explo- tivity to produce minerals and/or coal and associ- ration, and feasibility study in area of special min- ated minerals thereof. ing business license. 14. Mining Business License Area hereinafter called 8. IUP Production Operation shall be a business li- WIUP shall be an area granted to holder of mining cense issued following the completion of IUP Ex- business license. ploration to conduct phase of production opera- 15. Special Mining Business License Area hereinafter tion. called WIUPK shall be an area granted to holder of 9. (UP Production Operation shall be a business Ii- special mining business license. cense issued following the completion of IUPK 16. Reclamation Guarantee shall be a specified amount Exploration to conduct phase of production op- of funds provided by holders of mining business eration in area of special mining business license. license or special mining business license as guar- 10. Exploration shall be a phase of mining business antee for the execution of reclamation. activity to obtain detailed and accurate informa- 17. Post-Mining Guarantee shall be a specified amount tion about location, form, dimension, distribution, of funds provided by holders of mining busines quality and measurable resources and quarried license or special mining business license as guar- materials as well as information about social and antee for the execution of post mining activity. life environment. 18. Environmental Document shall be environmental 11. Feasibility Study shall be a phase of mining busi- impact analysis or environmental management ness activity to obtain detailed information about program-environmental monitoring program or the whole related aspects to determine economic statement of environmental management. and technical feasibility of mining business, in- 19. Minister shall be the minister in charge of public cluding environmental impact analysis as wel as administration affairs in the mineral and coal min- post-mining planning. ing sector. 22 I Business News-8648/1-2-2015 20. Director General shall be the Director General as- sity; signed and responsible for the formulation as well c. guaranty for stability and security of stacks as implementation of technical policy and stan- of side rocks and/or covering soil/land, tailing dardization in the mineral and coal sector. pool, ex-,mining site and other rock structure; d. utilization of ex-mining site in accordance CHAPTER II with the allocation thereof; PRINCIPLES e. observing local social and cultural values; and

Article 2 f. protection of the quantity of ground water in (1) Reclamation executed by Holders of IUP Explora- accordance with the provision of legislation. tion and IUPK Exploration shall be obliged to fulfill (4) The principle of occupational safety and health as the following principles: meant in paragraph (1) letter b and paragraph (2) a. mining environment protection and manage- letter b shall cover: ment; and a. protection of safety of every worker/labor;and b. occupational safety and health. b. protection of every worker/labor from disease (2) Reclamation and post-mining executed by holders attributable to work. of IUP Production Operation and IUP Production (5) The principle of mineral and coal conservation as Operation shall be obliged to fulfill the following meant in paragraph (2) letter c shall cover: principles: a. optimum mining; a. mining environment protection and manage- b. the use of effective and efficient processing ment; and/or refinery method and technology; b. occupational safety and health; and c. management and/or utilization of marginal c. mineral and coal conservation. reserves, low-rank minerals and associated (3) The principle of mining environment protection minerals as well as low-rank coal; and and management as meant in paragraph (1) letter d. collection of data about mineral and coal re- a and paragraph (2) letter a shall cover at leasti: sources and reserves which are not extract- a. protection of the quality of surface water, ed, as well as rests of the processing and/or ground water, sea water as well as air on the refinery. basis of the standard quality or criteria for en- vironmental damage in accordance with the Article 3 provision of legislation; (1) Holders of IUP Exploration and IUPK Exploration b. protection and restoration of biological diver- shall be obliged to integrate the principle of mining Business News 8648/1-2-2015 123 111=1311121= • - environment protection and management as well meant in paragraph (1) shall meet the principles as the principle of occupational safety and health as meant in Article 2 paragraph (1), paragraph as meant in Article 2 paragraph (1), paragraph (3), and paragraph (4) as well as take into ac- (3), and paragraph (4) into the exploration plan count: and environmental document in accordance with a. exploration method; the provision of legislation. b. specific condition of local area; and (2) Holders of IUP Production Operation and IUPK c. provision of legislation. Production Operation shall be obliged to integrate the principle of mining environment protection Article 5 and management, principle of occupational safe- (1) The exploration method as meant in Article 4 ty and health and principle of mineral and coal paragraph (2) letter a shall cover among others: conservation as meant in Article 2 paragraph a. geological mapping; (2), paragraph (3), paragraph (4) and paragraph b. pilot project with wide distance; (5) into mining planning formulatd in feasibility c. making pit; and study report and environmental document in ac- d. drilling. cordance with the provision of legislation. (2) Exploration by the exploration method as meant in paragraph (1) may cause land to be affected, CHAPTER III among others, drilling hole, test well, test pit and/ FORMULATION OF RECLAMATION AND POST- or exploration supporting facility. MINING PLAN Part One Article 6 General (1) Holders of IUP Exploration and IUPK Explora-

Article 4 tion already completing feasibility study shall be (1) Before executing exploration, holders of IUP Ex- obliged to formulate plan for reclamation in the ploration and IUPK Exploration shall be obliged to production operation phase and post-mining plan formulate a plan for reclamation in the exploration on the basis of environmental document already phase on the basis of environmental document approved by the authorized institution in accor- already approved by the authorized institution in dance with the provision of environmental protec- accordance with the provision of environmental tion and management legislation. protection and manegement legislation. (2) The reclamation plan in the production operation (2) The reclamatiOn the explovation phase as phase and post-mining plan as meant in paragraph Z4 Business News 8648/1-2-2015 (1) shall meet the principles as meant in Article 2 in Article 4 paragraph (2) letter b and Article 6 para- paragraph (2), paragraph (3), paragraph (4), and graph (2) letter b shall cover: paragraph (5) as well as take into account: a. status of land; a. mining system and method on the basis of b. form of ecosystem; result of feasibility study; c. condition of biological diversity; and b. specific condition of local area; and d. social and cultural condition. c. provision of legislation.

Article 9

Article 7 The provision of legislation as meant in Ar- (1) The mining system and method as meant in Ar- ticle 4 paragraph (2) letter c and Article 6 paragraph ticle 6 paragraph (2) letter a shall cover: (2) letter c shall cover among other provision of for- a. open mining; and estry, coastal area and isle legislation as long as it is b. underground mining. related to reclamation and post mining. (2) The production operation by the mining system and method as meant in paragraph (1) may cause Part Two land to be affected, covering among others: Formulation of Reclamation Plan a. mining area; Paragraph 1 b. stockpile of side rocks and/or covering soil/ Plan for Reclamation During Exploration Phase rock; Article 10 c. stockpile of rooting zone land; (1) Holders of IUP Exploration and IUPK Exploration d. stockpile of mining commodity; shall be obliged to formulate plan for reclamation e. mining road and/or carrying road; during the exploration phase as meant in Article f. processing and/or refinery installation and fa- 4 paragraph (1) in accordance with the period of cility; exploration by annual detail. g. supporting facility; (2) The plan for reclamation during the exploration h. office and housing; period as meant in paragraph (1) shall cover: i. special seaport/pier; and/or a. land resource management before and after j. land of stockpile and/or tailing sedimentation. exploration; b. plan for the opening of land of exploration

Article 8 causing land to be affected as meant in Ar- The specific condition of local area as meant ticle 5 paragraph (2); Business News 8648/ 1-2-2015 25 RtLLik - - c. reclamation program during the exploration wide as the land which is opened for the need of phase; exploration. d. criteria for the success of reclamation during the exploration phase, covering standard of Article 11 the success of land resource management, (1) Holders of IUP Exploration and IUPK Exploration re-vegetation and final settlement; and shall be obliged to submit the plan for reclamation e. planned cost of reclamation during the explo- during the exploration period as meant in Article ration phase. 10 to the Minister through the Director General, (3) The planned cost of reclamation during the ex- governor or regent/mayor by virtue of their au- ploration phase as meant in paragraph (2) letter e thority in no later than 45 (forty five) calendar shall be counted on the basis of: days before starting exploration. a. direct cost, consisting of cost of: (2) The plan for reclamation during the exploration 1. land resource management; and phase as meant in paragraph (1) shall be formu- 2. re-vegetation; lated in accordance with guidance for the formu- b. indirect cost consisting of cost of: lation of plan for reclamation during the explora- 1. mobilization and demobilization of equip- tion phase as contained in Attachment I, which ment; constitutes an integral part of this regulation. 2. reclamation planning; 3. administration and profit of the third par- Paragraph 2 ty as executor of reclamation during the Plan for Reclamation During Production Operation exploration phase; and Phase 4. supervision. Article 12 (4) The planned cost of reclamation during the explo- (1) Holders of IUP Exploration and IUPK Exploration ration phase as meant in paragraph (3) shall cover shall be obliged to formulate plan for reclamation the whole operational cost of reclamation during during the production operation phase as meant the exploration phase, including reclamation ex- in Article 6 paragraph (1) for a period of 5 (five) ecuted by the third party during the exploration years by annual detail. phase. (2) In the case of the mining age being less than 5 (5) The cost of reclamation during the exploration (five) years, the plan for reclamation during the phase shall be counted on the basis of the plan production operation phase as meant in Article for reclamation during the exploration phase as 6 paragraph ( 1) shall be formuled in accordance 26 Business News 8648/1-2-2015 1 26 GOVIIRNMENT RLGUI AT IONS with the mining age. the utilization of ex-mining hole shall be prepared, (3) The plan for reclamation during the production covering: operation phase as meant in paragraph (1) and a. stabilization of slope; paragraph (2), shall cover: b. security for ex-mining hole (void); a. land resource management before and after c. restoration and monitoring of quality of wa- the production operation phase; ter as well as management of water inside b. plan for the opening of land for activity in the ex-mining hole (void) in accordance with the production operation phase, which causes designation thereof; and land to be affected as meant in Article 7 d. maintenance of ex-mining hole (void). paragraph (2); (7) The planned cost of reclamation during the pro- c. reclamation program during the production duction operation phase as meant in paragraph operation phase; (3) letter e shall be counted on the basis of: d. criteria for the success of reclamation dur- a. direct cost, consisting of cost of: ing the production operation phase, covering 1. land resources management; standard of the success of land resources 2. re-vegetation; management, re-vegetation, civil work, and 3. prevention and mitigation of mining acid final settlement; and water; and e. planned cost of reclamation during the pro- 4. civil work in accordance with the post- duction operation phase. mining land designationn; or (4) The reclamation program during the production 5. utilization of ex-mining hole (void). operation phase as meant in paragraph (3) letter c b. indirect cost, consisting of cost of: may be executed in the form of re-vegetation and/ 1. mobilization and demobilization of equip- or other allocation. ment; (5) The other allocation as meant in paragraph (4) 2. reclamation planning; may be in the form of: 3. administration and profit of the third par- a. resettlement area; ty as executor of reclamation during the b. tourism; production operation phase: and c. water resources; or 4. supervision. d. cultivation area. (8) The planned cost of reclamation during the pro- (6) In the case of the execution of mining activity duction operation phase as meant in paragraph technically leaving ex-mining hole, the plan for (7) shall cover the whole operational cost of Business News 8648/1-2-2015 1 27 reclmamation during the production operation I operation phase in the area shall be submitted by con- phase, including reclamation executed by the I taming the following activities: third party during the production operation phase. a. management of sea water quality; (9) The cost of reclamation during the production b. mitigation of abrasion and/or coast sedimenta- operation phase in the first 5 (five) years period tion; and shall be counted on the basis of the plan for recla- c. protection of biological diversity. mation during the production operation phase as wide as the land opened in the first 5 (five) years Article 15 period for the need of production operation. Holders of IUP Production Operation and IUPK Production Operation shall be obliged to submit

Article 13 plan for reclamation during the production operation (1) Holders of IUP Exploration and IUPK Exploration phase for the next 5 (five) years period to the Min- shall be obliged to submit plan for reclamation ister through the Director General, governor, regent/ during the production operation phase as meant mayor by virtue of their authority in no later than 45 in Article 12 at the same time as the submis- I (forty five) calendar days before the expiration of rec- sion of application for IUP Production Operation lamation during the production operation phase for or IUPK Production Operation to the Minister the previous 5 (five) years period. through the Director General, governor, or regent/ mayor by virtue of their authority. Part Three (2) The plan for reclamation during the production Formulation of Post-Mining Plan operation phase as meant in paragraph (1) shall Article 16 be formulated in acordance with guidance for the (1) Holders of IUP Exploration and IUPK Exploration formulation of plan for reclamation during the pro- shall be obliged to formulate post mining plan on duction operation phase as contained in Attach- the basis of feasibility study and environmental ment II, which constitutes an integral part of this document already approved by the authorized in- ministerial regulation. stitution in accordance with the provision of envi- ronmental protection and management legislation

Article 14 as meant in Article 6 paragraph (1) as a require- In the case of the activity of reclamation dur- ment to secure IUP Production Operation and ing the production operation phase being located off- IUPK Production Operation. shore, the plan for reclamation during the production (2) The post-mining plan as meant in paragraph (1) 28 Business News 8648/1-2-2015 • - - ' • GC)VERNMEN1 RLtiut_Ai lUisez • , 4, shall contain: f. criteria for the success of post mining, cover- a. profile of area, covering: ing standard of the sucess in ex-mining site, 1. location and coverage of area; processing and/or refinery facility, supporting 2. land ownership and designation; facility and monitoring; and 3. initial environmental condition, covering g. planned cost of post mining. allocation of land, morphology, surface (3) The planned cost of post mining as meant in para- water, groundwater, aquatic and terreste- graph (2) letter g shall be counted on the basis of: rial biology, as well as social, culture and a. direct cost, consisting of cost: economy in accordance with environmen- 1. in ex-mining site, composed of costs: tal document already approved; a) demobilization; 4. other activity around mining. b) reclamation; b. description of mining activity, covering ini- c) security for the whole mining pits. tial condition of reserves, mining system and 2. in processing and/or refinery facilities, method, processing and/or refinery as well as composed of costs: supporting facility; a) demobilization; c. final environmental condition of post-mining b) Reclamation; land, covering condition of the left-over re- c) restoration (remediation) of the con- serves, designation of land, morphology, sur- tamined land. face water and groundwater, aquatic and ter- 3. in supporting facilities, composed of resterial biology, as well as social, culture and costs: economy; a) demobilization; d. post-mining program, covering: b) Reclamation; 1. reclamation in ex-mining site and land c) treatment of rest of fuel oil, lubricant outside ex-mining site; and chemical substances; 2. social, cultural and economic develop- d) restoration (remediation) of the con- ment; tamined land. 3. maintenance of reclamation outcomes; 4. social, cultural and economic develop- and ment; 4. monitoring. 5. maintenance; e. organization, including timetable of the ex- 6. monitoring. ecution of post mining; b. indirect cost, consisting of cost of: Business News 8648/ 1-2-2015 I 29 GOVEMENT Er 'LI AT +01 .4S • _ • , - 1. mobilization and demobilization of equip- mining affairs; ment; b. other related institutions; and 2. post-mining planning; c. communities to be affected directly by mining 3. administration and profit of the third par- business activity. ty as executor of post mining; and (3) Result of the consultation as meant in paragraph 4. supervision. (1) shall be written down into account signed by (4) The cost of social, cultural and economic devel- the stakeholders as meant in paragraph (2). opment as meant in paragraph (3) letter a point 4 shall be regulated in the framework of enhancing Article 18 entrepreneurship after entering post mining. (1) Holders of IUP Exploration and IUPK Exploration (5) The planned cost of post mining as meant in para- shall be obliged to submit the post mining plan as graph (3) shall count the future value of money meant in Article 16, along with the account of upon the execution of post mining. result of consultation as meant in Article 17 para- (6) The future value of money as meant in paragraph graph (3) at the same time as the submission of (5) shall refer to interest rate of government bond application for IUP Production Operation or IUPK if the currency is in the rupiah or interest rate of Production Operation to the Minister through the US Dollar bond if the currency is the US Dollar Director General, governor, or regent/mayor by (7) The planned cost of post mining as meant in para- virtue of their authority. graph (3) shall cover the whole operational costs (2) The post mining plan as meant in paragraph (1) of post mining, including post mining activity ex- shall be formulated in accordance with guidance ecuted by the third party. for the formulation of post mining plan as con- tained in Attachment III, which constitutes an in-

Article 17 tegral part of this ministerial regulation. (1) In formulating the post mining plan as meant in

Article 16, Holders of IUP Exploration and IUPK CHAPTER IV Exploration shall consult with stakeholders. EVALUATION AND APPROVAL (2) The stakeholders as meant in paragraph (1) shall Part One consist of: Evaluation and Approval of Reclamation Plan a. the Ministry of Energy and Mineral Resourc- Paragraph 1 es, provincial and/or regency/municipal gov- Evaluation and Approval of Reclamation Plan in the erinct service in charge of mineral and coal Exploration Phase 30 Business News 8648/1-2-2015 . •• (JOVE RHATNTR! • • •• T - ICP,T;- • '4.1 • • • • • f.-- "s r.2.-' ' •

Article 19 in the exploration phase, the submitted reclama- (1) The Director General on behalf of the Minister, tion plan in the exploration phase shall be deemed governor or regent/mayor by virtue of their au- approved. thority shall evaluate and approve the reclamation plan in the exploration phase as meant in Article Article 20 11 in no later than 30 (thirty) calendar days as (1) Holders of IUP Exploration and IUPK Exploration from the receipt of the reclamation plan in the shall be obliged to change the approved plan for exploration phase, excluding the number of days reclamation in the exploration phase as meant in needed to improve the reclamation plan in the ex- Article 19, in the case of any change in explora- ploration period. tion plan or environmental document. (2) In the case of the reclamation plan in the explora- I (2) The change in the plan for reclamation in the ex- tion phase not yet fulfilling the provision as meant ploration period as meant in paragraph ( 1) shall in Article 10, The Director General on behalf of be submitted to the Minister through the Director the Minister, governor or regent/mayor by virtue General, governor or regent/mayor by virtue of of their authority shall return the reclamation plan their authority, in no later than 180 (one hundred in the exploration phase to holders of IUP Explora- eighty) calendar days before executing reclama- tion or IUPK Exploration to be perfected. tion in the exploration phase in the following year. (3) Holders of IUP Exploration or IUPK Exploration I (3) The Director General on behalf of the Minister, shall be obliged to submit again the reclamation governor or regent/mayor by virtue of their au- plan in the exploration phase already perfected thority shall evaluate and approve the change in as meant in paragraph (2) to the Minister through the plan for reclamation in the exploration phase the Director General, governor or regent/mayor by as meant in paragraph (2) in no later than 30 virtue of their authority in no later than 30 (thirty) (thirty) calendar days as from the receipt of the calendar days as from the returning of the recla- change in the plan for reclamation in the explora- mation plan in the exploration phase. tion phase, excluding the number of days needed (4) In the case of the Director General on behalf of to perfect the change in the plan for reclamation the Minister, governor or regent/mayor by virtue in the exploration phase. of their authority not recommending the improve- (4) In the case of the change in the plan for rela- ment or not approving in 30 (thirty) calendar days mation in the exploration phase not yet fulfilling as from the receipt of the reclamation plan in the the provision as meant in Article 10, the Direc- exploration phase or the revised reclamation plan tor General on behalf of the Minister, governor or Business News 8648/1-2-2015 I 31 regent/mayor by virtue of their authority shall re- Paragraph2 turn the change in the plan for reclamation in the Evaluation and Approval of Plan for Reclamation exploration phase to holders of IUP Exploration or in Production Operation Phase IUPK Exploration to be perfected. Article 22 (5) Holders of IUP Exploration or IUPK Exploration (1) The Director General on behalf of the Minister, shall be obliged to submit again the perfected governor or regent/mayor by virtue of their au- change in the plan for reclamation in the explo- thority shall evaluate and approve the plan for ration phase as meant in paragraph (4) to the reclamation in the production operation phase as Minister through the Director General, governor meant in Article 13 in no later than 30 (thirty) or regent/mayor by virtue of their authority in no calendar days as from the issuance of IUP Pro- later than 30 (thirty) calendar days as from the duction Operation or IUPK Production Operation, returning of the change in the plan for reclamation excluding the number of days needed to perfect in the exploration phase. the plan for reclamation in the production opera- (6) In the case of the Director General on behalf of tion phase. the Minister, governor or regent/mayor by virtue (2) In the case of the plan for reclamation in the pro- of their authority not granting recommendation duction operation phase not yet fulfilling the pro- about the improvement or approval in 30 (thirty) vision as meant in Article 12, the Director General calendar days as from the receipt of the change in on behalf of the Minister, governor or regent/may- the plan for reclamation in the exploration period or by virtue of their authority shall return the plan or the perfection of the change in plan for rec- for reclamation in the production phase to holders lamation in the exploration phase, the submitted of IUP Production Operation or IUPK Production change in the plan for reclamation in the explora- Operation to be perfected. tion phase shall be deemed approved. (3) Holders of IUP Production Operation or IUPK Production Operation shall be obliged to submit

Article 21 again the perfected plan for reclamation in the The approval of the plan for reclamation in production operation phase as meant in paragraph the exploration phase as meant in Article 19 and 12) to the Minister through the Director General,

Article 20 shall include the stipulation of the amount governor or regent/mayor by virtue of their au- of reclamation guarantee in the exploration phase thority in no later than 30 (thirty) calendar days in accordance with the exploration period by annual as from the returning of the plan for reclamation detU in the production operation phase. 32 Business News 8648/1-2-2015 tor General on behalf of the Minister, governor governor or regent/mayor by virtue of their author- or regent/mayor does not approve or recommend ity shall evaluate and approve the change in the the perfection in 30 (thirty) calendar days as plan for reclamation in the production operation from the issuance of IUP Production Operation or phase as meant in paragraph (2) in no later than IUPK Production Operation or the receipt of the 30 (thirty) calendar days as from the receipt of perfection of plan for reclamation in the produc- the plan for reclamation in the production opera- tion operation phase. tion phase, excluding the number of days needed to perfect the change in the plan for reclamation

Article 23 in the production operation phase. (1 ) Holders of IUP Production Operation and IUPK (4) In the case of the change in the plan for recla- Production Operation shall be obliged to change mation in the production phase not yet fulfilling the approved plan for reclamation in the produc- the provision as meant in Article 12, the Direc- tion operation phase as meant in Article 22, in tor General on behalf of the Minister, governor the case of any change in: or regent/mayor by virtue of their authority shall a. mining system and method; return the change in the plan for reclamation in b. production capacity; the production operation phase to holders of IUP c. mining age; Production Operation or IUPK Production Opera- d. land affairs management; and/or tion to be perfected. e. environmental documents already approved (5) Holders of IUP Production Operation or IUPK Pro- by the authorized institution in accordance duction Operation shall be obliged to submit again with the provision of environmental protec- the perfected change in the plan for reclamation tion and management legislation. in the production operation as meant in paragraph (2) The change in the plan for reclamation in the pro- (4) to the Minister through the Director General, duction operation phase as meant in paragraph governor or regent/mayor by virtue of their au- (1 ) shall be submitted to the Minister through the thority in no later than 30 (thirty) calendar days Director General, governor or regent/mayor by vir- as from the returning of the change in the plan for tue of their authority in no later than 180 (one reclamation in the production operation phase. hundred eighty) calendar days before the execu- I (6) The change in the plan for reclamation in the tion of reclamation in the production phase for the production operation phase shall be deemed Business News 8648/1-2-2015 33 daiisamaalaIRMINI•110•111111110r, approved unless the Director General on behalf of Minister, governor or regent/mayor by virtue of the Minister, governor or regent/mayor by virtue their authority shall return the post-mining plan of their authority recommends the improvement to holders of IUP Production Operation or IUPK or approves in 30 (thirty) calendar days as from Production Operation to be perfected. the receipt of the change in the plan for recla- (3) Holders of IUP Production Operation or IUPK mation in the production operation phase or the Production Operation shall be obliged to submit improvement of the change in the plan for recla- again the perfected post-ming plan as meant in mation in the production operation phase. paragraph (2) to the Minister through the Direc- tor General, governor or regent/mayor by virtue

Article 24 of their authority in no later than 30 (thirty) calen- The approval of the plan for reclamation in dar days as from the returning of the post-mining the production operation phase as meant in Article plan. 22 and Article 23 shall include the stipulation of the (4) The submitted post-mining plan shall be deemed amount of guarantee for reclamation in the produc- approved in the case of the Director General on tion operation phase for a period of 5 (five) years by behalf of the Minister, governor or regent/mayor annual detail. by virtue of their authority not recommending the improvement or not approving in 60 (sixty) calen- Part Two dar days as from the issuance of IUP Production Evaluation and Approval of Post-Mining Plan Operation or IUPK Production Operation or the re-

Article 25 ceipt of the improvement of the post-mining plan. (1) The Director General on behalf of the Minister, governor or regent/mayor by virtue of their au- Article 26 thority shall evaluate and approve the post-mining (1) Holders of IUP Production Operation and IUPK plan as meant in Article 18 in no later than 60 Production Operation shall be obliged to change (sixty) calendar days as from the issuance of IUP the approved post-mining plan as meant in Ar- Production Operation or IUPK Production Opera- ticle 25 in the case of any change in the plan for tion, excluding the number of days needed to per- reclamation in the production operation phase as fect the post-mining plan. meant in Article 23. (2) In the case of the post-mining plan not yet ful- (2) The change in the post-mining plan as meant in filling the provision as meant in Article 16 and paragraph (1) shall be submitted to the Minister

Article 17, the Director General on behalf of the through the Director General, governor or regent/ 34 Business News 8648/ 1-2-2015 mayor by virtue of their authority in no later than of the change in the post-mining plan or the per- 2 (two) years before the expiration of mining ac- fection of the post-mining plan, the submitted tivity change in the post-mining plan shall be deemed (3) The Director General on behalf of the Minister, approved. governor or regent/mayor by virtue of their au- thority shall evaluate and approve the change in Article 27 the post-mining plan as meant in paragraph (1) in The approval of the post-mining plan as meant no later than 90 (ninety) calendar days as from in Article 25 and Article 26 shall contain the stipula- the receipt of the change in post-mining plan, ex- tion of the amount of post-mining guarantee, time- cluding the number of days needed to perfect the table of placement and period of placement thereof. change in the post-mining plan. (4) In the case of the change in the post-mining plan CHAPTER V not yet fulfilling the provision as meant in Article RECLAMATION GUARANTEE AND POST-MINING 16 and Article 17, the Director General on behalf GUARANTEE of the Minister, governor or regent/mayor by vir- Part One tue of their authority shall return the change in Reclamation Guarantee the post-mining plan to holders of IUP Production Paragraph 1 Operation or IUPK Production Operation to be Guarantee for Reclamation in Exploration Phase perfected. Article 28 (5) Holders of IUP Production Operation or IUPK Pro- (1) Holders of IUP Exploration and IUPK Exploration duction Operation shall be obliged to submit again shall be obliged to provide guarantee for reclama- the perfected change in the post-mining plan as tion in exploration phase in accordance with the meant in paragraph (4) to the Minister through amount of guarantee for reclamation in the explo- the Director General, governor or regent/mayor by ration phase, which is stipulated by the Director virtue of their authority in no later than 30 (thirty) General on behalf of the Minister, governor or re- calendar days as from the returning of the post- gent/mayor by virtue of their authority as meant mining plan. in Article 21. (6) Unless the Director General on behalf of the Min- (2) The guarantee for reclamation in the exploration ister, governor or regent/mayor by virtue of their phase as meant in paragraph ( 1) shall be placed authority recommends the perfection or approves wholly at the beginning in accordance with the de- in 90 (ninety) calendar days as from the receipt termination of reclamation cost in the exploration Business News 864811-2-2015 35 GOVERNMENT REGUlt,TIONS phase as meant in Article 10 paragraph (5) and I thority may order holders of IUP Exploration and IUPK shall be written down into work plan and budget I Exploration to change the amount of the guarantee of exploration cost. for reclmation in the exploration phase in the case of: (3) The placement of guarantee for reclamation in the a. any change in the exploration plan as meant in exploration phase as meant in paragraph (2) shall Article 20; or be done in no later than 30 (thirty) calendar days b. the operational cost of exploration in the explora- as from the approval of work plan and budget of tion phase not matching the plan for reclamation cost in the exploration phase by the Director Gen- in the exploration phase. eral on behalf of the Minister, governor or regent/ mayor by virtue of their authority. Article 31 (1) The placement of guarantee for reclamation in the

Article 29 exploration phase shall not eliminate the obliga- (1) The gurantee for reclamation in the exploration tion of holders of IUP Exploration and IUPK Explo- phase as meant in Article 28 shall be in the form ration to conduct reclamation. of time deposit at government bank in Indonesia (2) The shortfall of the cost needed to settle reclama- in the name of the Director General, governor or tion in the exploration phase from the stipulated regent/mayor qq the said holders of IUP Explora- guarantee shall become responsibility of holders tion or IUPK Exploration with the guaranty period of IUP Exploration or IUPK Exploration. according to the timetable of reclamation in the exploration phase. (2) The guarantee for reclamation in the exploration Paragraph 2 phase as meant in paragraph ( 1) shall be place in Guarantee for Reclamation in Production Operation the Rupiah or the US Dollar. Phase (3) Procedure for the placement of guarantee for Article 32 reclamation in the exploration phase as meant in I (1) Holders of IUP Production Operation and IUPK paragraph (1) shall be accordance with the provi- Production Operation shall be obliged to provide sion of legislation. guarantee for reclamation in the production op- eration phase in accordance with the amount of

Article 30 guarantee for reclamation in the production oper- The Director General on behalf of the Minis- ation phase stipulated by the Director General on ter, governor or regentlmayer by virtue of their au- behalf of the Minister, governor or regent/mayor 36 Business News 8648/1-2-2015 by virtue of their authority as meant in Article 24. Article 33 (2) The guarantee for reclamation in the production (1) Holders of IUP Production Operation and IUPK operation phase for the first 5 (five) years period Production Operation shall be obliged to submit shall be placed wholly for the 5 (five) years pe- model of guarantee for reclamation in the produc- riod tion operation phase to the Minister through the (3) In the case of mining age being less that 5 (five) Director General, governor or regent/mayor by vir- years, the guarantee for reclamation in the pro- tue of their authority. duction operation phase shall be placed in accor- (2) The model of guarantee for reclamation in the dance with the mining age. production operation phase as meant in paragraph (4) The guarantee for reclamation in the production (1)may be in the form of: operation phase as meant in paragraph (2) for the a. joint account placed at government bank in next 5 (five) years period may be place wholly for the name of the Director General, governor, the 5 (five) years period or every year. or regent/mayor and holders of IUP Produc- (5) The placement of guarantee for reclamation in the tion Operation or IUPK Production Opera- production operation phae every year as meant in tion; paragraph (4) shall be written down into annual b. time deposit placed at government bank in work plan and budget of production operation Indonesia in the name of the Director General, cost. governor or regent/mayor qq the said holders (6) The placement of guarantee for reclamation in the of IUP Production Operation or IUPK Produc- production operation phase as meant in paragraph tion Operation with the guaranty period ac- (2) shall be done in no later tan 30 (thirty) calen- cording to the timetable of reclamation in the dar days as from the approval of the plan for rec- production operation phase; lamation in the production operation phase by the c. bank guarantee issued by government bank Director General on behalf of the Minister, gover- in Indonesia or national private bank in Indo- nor or regent/mayor by virtue of their authority. nesia with the guaranty period according to (7) The placement of guarantee for reclamation in the the timetable of reclamation in the production production operation phase for the next year pe- operation phase; or riod as meant in paragraph (4) shall be done in no d. Accounting Reserve, which may be placed if later than 14 (fourteen) calendar days as from the the holders of IUP Production Operation or commencement of the current year. IUPK Production Operation comply with the following requirements: Business News 8648/1-2-2015 I 37 1. registered at stock exchange in Indone- as meant in paragraph (2) shall be in accordance sia and already placing over 40% (fourty with the provision of legislation. percent) of the total shares which are owned; and Article 34 2. having paid-up capital minimally US$ (1) Holders of IUP Production Operation and IUPK 50,000,000 (fifty thousand US Dollar) Production Operation placing guarantee for recla- as contained in the deed of the establish- mation in the form of accounting reserves already ment of the company and/or the amend- fulfilling the requirement as meant in Article 33 ment thereoto legalized by notary paragraph (2) letter d shall be obliged to submit (3) The guarantee for reclamation in the production statement of placement of guarantee for reclama- operation phase as meant in paragraph (2) shall tion legalized by notary to the Minister through be placed in the rupiah or US Dollar. the Director General, governor or regent/mayor by (4) The Director General on behalf of the Minister, virtue of their authority. governor or regent/mayor by virtue of their au- 1 (2) The statement as meant in paragraph ( 1) shall thority shall stipulate model of guarantee for be accompanied by annual financial statement al- reclamation in the production operation phase, ready audited by public accountant. which is placed by the holders of IUP Production Operation or IUPK Production Operation as meant Article 35 in paragraph (2). (1) The Director General on behalf of the Minister, (5) In the case of the guarantee for reclamation in governor or regent/mayor by virtue of their au- the production operation phase in the form of the thority may order the holders of IUP Production bank guarantee as meant in paragraph 2 letter c Operation and IUPK Production Operation to having validity period already expired, the holders change the amount of guarantee for reclamation of IUP Production Operation or IUPK Production in the production operation phase in the case of: Operation shall be obliged to extend the validity a. any change in the plan for reclamation in the period of the guarantee before the Director Gen- production operation phase as meant in Ar- eral on behalf of the Minister, governor or regent/ ticle 23; or mayor by virtue of their authority declares in writ- b. the operational cost of reclamation in the ing that it may be released. production operation phase not marching the (6) Procedures for the placement of guarantee for plan for reclamation in the production opera- reclamation in the production operation phase tion phase. 38 Business News 8648/1-2-2015 SIMIESERMEIMMEr. • (2) The Director General in the name of the Minis- duction Operation and IUPK Production Op- ter, governor, or regent/mayor by virtue of their eration. authority may order the holders of IUP Produc- tion Operation and IUPK Production Operation to Article 37 change the model of guarantee for reclamation in (1) The placement of guarantee for reclamation in the the production operation phase on the basis of production operation phase shall not eliminate the consideration about: obligation of IUP Production Operation and IUPK a. performance of the holders of IUP Pro- Production Operation to execute reclamation in duction Operation and IUPK Production the production operation phase. Operation; and/or (2) The shortfall of cost needed to complete reclama- b. financial capablility of the holders of IUP tion in the production operation phase from the Production Operation and/or IUPK Pro- stipulated guarantee shall continue to become re- duction Operation. sponsibility of the holders of IUP Production Op- eration and IUPK Production Operation.

Article 36 (1) Holders of IUP Production Operation and IUPK Part Two Production Operation may submit the change in Post-Mining Guarantee the model of guarantee for reclamation in the pro- Article 38 duction operation phase as meant in Article 33 (1 ) Holders of IUP Production Operation and IUPK to the Minister through the Director General, gov- Production Operation shall be obliged to provide ernor or regent/mayor by virtue of their authority post mining guarantee in accordance with the (2) The Director General on behalf of the Minister, amount of post mining guarantee already stipu- governor or regent/mayor by virtue of their au- lated by the Director General on behalf of the Min- thority shall approve the change in the model of ister, governor or regent/mayor by virtue of their guarantee for reclamation in the production op- authority as meant in Article 27. eration phase as meant in paragraph (1) on the (2) The post mining guarantee as meant in paragraph basis of consideration about: (1) shall be placed every year and written down a. performance of the holders of IUP Production into annual work plan and budget of production Operation and IUPK Production Operation; operation. and/or (3) The placement of the post mining guarantee as b. financial capability of the holders of IUP Pro- meant in paragraph (2) shall be done in no later Business News 8648/1-2-2015 I 39 .,:::::::',...:,...):-..:. ..... .: • • :. . . . . . 1: ::. :;.;:,..i,:::.];:., ,.. GOVERNMENT R EG 1JLATIONS than 30 (thirty) calendar days in accordance with Article 40 the timetable of the placement of post mining (1) The placement of the post mining guarantee shall guarantee stipulated in the approval of post min- not eliminate the obligation of the holders of IUP ing plan. Production Operation and IUPK Production Op- (4) The post mining guarantee shall be collected to- eration to execute post mining. tally in 2 (two) years before embarking on the (2) The shortfall of cost needed to complete the post execution of post mining. mining from the stipulated guarantee shall con- (5) Procedures for the placement of post mining tinue to become responsibility of the holders of guarantee as meant in paragraph (3) shall be in IUP Production Operation and IUPK Production accordance with the provision as contained in At- Operation. tachment IV, which constitutes an integral of this regulation. CHAPTER VI RECLAMATION AND POST MINING

Article 39 Part One (1) The post mining guarantee as meant in Article General 38 shall be in the form of time deposit placed Article 41 at government bank in Indonesia in the name of (1) Holders of IUP Exploration, IUP Production Op- the Director General, governor or regent/mayor qq eration, IUPK Exploration and IUPK Production the holders of IUP Production Operation or UPK Operation shall be obliged to execute reclamation Production Operation with the guaranty period ac- in accordance the approved reclamation plan as cording to the timetable of post mining. meant in Article 19, Article 20, Article 22, and (2) The post-mining guarantee as meant in paragraph Article 23. (1) shall be placed in the Rupiah or the US Dollar. (2) Holders of IUP Production Operation and IUPK (3) Model of the currency of post mining guarantee Production Operation shall be obliged to execute as meant in paragraph (2) already stipulated may post mining in accordance with the post mining not be changed. plan as meant in Article 25 and Article 26. (4) Interest on the time deposit as meant in paragraph (3) The execution of the reclamation and post mining (1) may only be disbursed upon the disbursement shall be led by chief of mining technique assisted of post-mining guarantee. by officer competent in the execution of reclama- tion and post mining. Business News 864811-2-2015 Part Two Paragragh 2 Execution of Reclamation Execution of Reclamation in the Production Opera- Paragraph 1 tion Phase Execution of Reclamation in the Exploration Phase Article 43

Article 42 (1) Holders of IUP Production Operation and IUPK (1) Holders of IUP Exploration and IUPK Exploration Production Operation shall be obliged to execute shall be obliged to execute reclamation in the reclamation in the production operation phase as exploration phase, which has been approved as meant in Article 22 and Article 23 on land af- meant in Article 19 and Article 20 on land af- fected by production operation activity. fected by exploration activity. (2) The affected land as meant in paragraph (1) shall (2) The affected land as meant in paragraph (1 ) shall cover ex-mining site and land outside ex-mining be land formerly used as location of exploration, site, which is not used anymore. which is not used anymore. (3) The ex-mining site as meant in paragraph (2) by (3) The former exploration site as meant in paragraph underground mining system shall be among oth- (2) shall be among others: ers shaft, raise, stope, ad it, decline, pit, tunnel, a. ex-exploration site; and and/or final void. b. ex-site of exploration supporting facility site. (4) The land outside ex-mining site as meant in para- (4) The ex-site of exploration activity as meant in graph (2) by open pit system shall be among oth- paragraph (3) letter a shall be among others drill- ers: ing holes, test wells and test drainage. a. stockpile of side rocks and/or covering rocks; (5) The ex-site of exploration supporting facility as b. stockpile of rooting zone soil; meant in paragraph (3) letter b shall be among c. stockpile of mining commodity; others exploration way, base camp, helipad, and/ d. mining road and/or hauling road; or workshop which are not used anymore. e. processing and/or refinery installation and fa- (6) The execution of reclamation in the exploration cility; phase shall be done in no later that 30 (thirty) f. supporting facility; calendar days following the termination of explo- g. office and housing; ration activity in the affected land as meant in h. special seaport/jetty; and/or paragraph (2), paragraph (3), paragraph (4), and i. land used to collect and/or sediment tailing. paragraph (5). (5) The execution of reclamation in the production operation phase shall be done in no later than 30 Business News 8648/1-2-2015 41 GOVERNMENT REG U L. AT IONS (thirty) calendar days following the termination of following the expiration of mining, processing and/ activity on the affected land as meant in para- or refinery activity in accordance with the approved graph (2), paragraph (3), and paragraph (4). post-mining plan. (6) In the case of the absence of activity on the af- fected land as meant in paragraph (5) and re-min- CHAPTER VII ing activity being planned to continue in the area, REPORTING AND DISBURSEMENT OF RECLAMA- holders of IUP Production Operation and IUPK TION AND POST-MINING GUARANTEE Production Operation shall be obliged to execute Part One reclamation in the production operation phase in Reporting of Reclamation and Disbursement of Rec- the framework of controlling the quality of sur- lamation Guarantee face water, erosion and sedimentation. Paragraph 1 Reporting of Reclamationin Exploration Phase and

Article 44 Disbursement of Guarantee for Reclamation in Explo- (1) In the event that the reclaimed area is to be re- ration Phase opened for mining activity, holders of IUP Produc- Article 46 tion Operation and IUPK Production Operation (1) Holders of IUP Exploration and IUPK Exploration shall be obliged to submit the plan for mining ac- shall be obliged to submit report on the execution tivity to secure approval from the Director Gen- of reclamation in the exploration phase every one eral on behalf of the Minister, governor or regent/ year to the Minister through the Director General, mayor by virtue of their authority. governor or regent/mayor by virtue of their au- (2) The plan for mining activity as meant in paragraph thority. ( 1) shall be obliged to count the scale of econo- (2) The report on the execution of reclamation in the my of the executed reclamation. exploration phase as meant in paragraph (1) shall be accompanied by application for the disburse- Part Three ment of reclamation guarantee in the exploration Execution of Post Mining phase.

Article 45 (3) The report as meant in paragraph (1) shall be Holders of IUP Production Operation and formulated in accordance with Guidance for the IUPK Production Operation shall be obliged to ex- Formulation of Report on the Execution of Rec- ecute the post mining as meant in Article 25 and lamation in the exploration phase as contained in

Article 26 in no later than 30 (thirty) calendat days Attachment V. which constitutes an integral part 42 Business News 8648/ 1-2-2015 R • of this ministerial regulation. (2) The disbursement of reclamation guarantee in the exploration phase as meant in paragraph (1) may

Article 47 only be done after the score of evaluation reach- (1) The Director General on behalf of the Minister, es 100 % (one hundred percent) in accordance governor or regent/mayor by virtue of their au- with Guidance for Reclamation in the Exploration thority shall approve the approval of the disburse- Phase as contained in Attachment VII, which con- ment of guarantee for reclamation in the explora- stitutes an integral part of this ministerial regula- tion phase in no later than 30 (thirty) calendar tion. days after the report as meant in Article 46 is received Article 49 (2) The Director General on behalf of the Minister, I (1) The Director General on behalf of the Minister, governor or regent/mayor by virtue of their author- governor or regent/mayor by virtue of their au- ity, before approving the disbursement of guaran- thority may conduct site visit in evaluating the tee for reclamation in the exploration phase as disbursement of reclamation guarantee in the ex- meant in paragraph (1) shall be obliged to evalu- ploration phase as meant in Article 48. ate the report on the execution of reclamation in (2) The site visit as meant in paragraph (1) shall be the exploration phase. down after the formulation of document of feasi- (3) The evaluation as meant in paragraph (2) shall be I bility study is completed. executed by referring to Success Criteria for Rec- (3) Result of the site visit as meant in paragraph (1) lamation in the Exploration Phase as contained in shall be written down into account which con- Attachment IV, which constitutes an integral part tains evaluation of the success of reclamation in of this ministerial regulation. the exploration phase as contained in Attachment VIII, which constitutes an integral part of this

Article 48 ministerial regulation. (1) The Director General on behalf of the Minister, governor or regent/mayor by virtue of their au- Paragraph 2 thority, before approving the disbursement of rec- Reporting of Reclamation in Production Operation lamation guarantee in the exploration phase, shall Phase and Disbursement of Reclamation Guarantee evaluate to disburse the reclamation guarantee in Production Operation Phase in the exploration phase, besides executing the Article 50 evaluation as meant in Article 47 paragraph (2). (1) Holders of IUP Production Operation and IUPK Business News 8648/1-2-2015 43 Production Operation shall be obliged to submit tion of reclamation in the production operation report on the execution of reclamation in the pro- phase. duction operation phase every year to the Min- (3) The evaluation as meant in paragraph (2) shall ister, through the Director General, governor or be executed by referring to Success Criteria for regent/mayor by virtue of their authority. Reclamation in the Production Operation Phase as (2) The report on the execution of reclamation in the contained in Attachment X, which constitutes an production operation phase as meant in paragraph integral part of this regulation. (1) shall be accompanied by application for the disbursement or release of reclamation guarantee Article 52 in the production operation phase. (1) The application for the disbursement of reclama- (3) The report as meant in paragraph (1) shall be tion guarantee in the production operation phase formulated in accordance with Guidance for the as meant in Article 50 shall be done for reclama- Formulation of Report on the Execution of Rec- tion guarantee in the production operation phase lamation in the Exploration Phase as contained in in the form of joint account and time deposit Attachment IX, which constitutes an integral part along with the interest thereon. of this ministerial regulation. (2) The application for the release of reclamation guarantee in the production operation phase as

Article 51 meant in Article 50 shall be done for reclama- (1) The Director General on behalf of the Minister, tion guarantee in the production operation phase governor or regent/mayor by virtue of their au- in the form of bank guarantee and accounting re- thority shall approve the disbursement or release serves. of guarantee for reclamation in the production op- eration phase in no later than 30 (thirty) calendar Article 53 days as from the receipt of the report as meant in (1) The Director General on behalf of the Minister, Article Article 50. governor or regent/mayor by virtue of their au- (2) The Director General on behalf of the Minister, thority, before approving the disbursement or re- governor or regent/mayor by virtue of their au- lease of reclamation guarantee in the production thority, before approving the disbursement or operation phase, shall evaluate to disburse or re- release of reclamation guarantee in the produc- lease the reclamation guarantee in the production tion operation phase as meant in paragraph (1) operation phase, besides executing the evaluation shatt bt obtiged to evaluate report on the execu- as meant in Article 51. 44 Business News 8648/ 1-2-2015 • - • • r GOVERN ME N f R EEG U L AT 10 NI S • • (2) The evaluation determining the amount of the dis- ment, bursement or release of reclamation guarantee in in accordance with Guidance for Evaluation the production operation phase as meant in para- of Reclamation in the Production Operation graph (1) shall be determined as follows: Phase as contained in Attachment XI, which a. maximally 60% (sixty percent) of the amount constitutes an integral part of this ministerial of reclamation guarantee in the production regulation. operation phase if the following land manage- ment activity has been completed: Article 54 1. arrangement of land surface or refill of ex- (1) In evaluating the disbursement or release of rec- mining site; lamation guarantee in the production operation 2. distribution of rooting zone soil; phase as meant in Article 53, the Director Gen- 3. erosion control and water management eral on behalf of the Minister, governor or regent/ In accordance with the designation there- mayor by virtue of their authority shall conduct of, as set forth in the reclamation plan site visit. in the production operation phase already (2) The site visit as meant in paragraph (1) shall be stipulated; done in no later than 15 (fifteen) calendar days b. maximally 80% (eighty percent) of the as from the receipt of report on the execution of amount of reclamation guarantee in the pro- reclamation in the production operation phase. duction operation phase if the activity as (3) Result of the site visit as meant in paragraph ( meant in letter a and the following vegetation 1) shall be written down into account containing work have been completed: evaluation of the success of reclamation in the 1. planting of cover crop; production operation phase as contained in At- 2. planting of fast-growing crop; tachment XII, which constitutes an integral part 3. planting of local species plant; and/or of this ministerial regulation. 4. control over mining acid water, As set forth in reclamation plan in the produc- Article 55 tion operation phase already approved. (1) In the case of the evaluation showing that the c. 100% (one hundred percent) of the amount success of reclamation in the production opera- of reclamation guarantee in the production tion phase as meant in Article 53 has not reached operation phase after the reclamation phase 100% (one hundred percent), the value of the dis- in the production phase meets the final settle- bursement or release of reclamation guarantee in Business News 8648/1-2-2015 1 45 the production operation phase shall be adjusted of Post Mining as contained in Attachment XIII, to result of evaluation in the field. which constitutes an integral part of this ministe- (2) The reset of reclamation guarantee in the produc- rial regulation. tion operation phase, which has not been dis- bursable or releasable, shall be placed again as Article 57 reclamation guarantee in the production operation j (1) The Director General on behalf of the Minister, phase. governor or regent/mayor by virtue of their au- thority shall approve the disbursement of post Part Two mining guarantee in no later than 30 (thirty) cal- Reporting of Post Mining and Disbursement of Post endar days following the receipt of the report as Mining Guarantee meant in Article 56.

Article 56 (2) The Director General on behalf of the Minister, (1) Holders of IUP Production Operation and IUPK governor or regent/mayor by virtue of their au- Production Operation shall be obliged to submit thority, before approving the disbursement of report on the execution of post mining activity post mining guarantee as meant in paragraph (1) every quarter to the Minister through the Direc- shall be obliged to evaluate report on the execu- tor General, governor or regent/mayor by virtue tion of post mining. of their authority. (3) The evaluation as meant in paragraph (2) shall (2) The report on the execution of post mining activ- be executed by referring to Success Criteria for ity as meant in paragraph (1) shall be accompa- the Post Mining as contained in Attachment XIV, nied by application for the disbursement of post which constitutes an integral part of this ministe- mining guarantee. rial regulation. (3) The application for the disbursement of post min- ing guarantee as meant in paragraph (2) along Article 58 with interest thereon shall contain detail of pro- (1) The Director General on behalf of the Minister, gram planned cost of post mining already execut- governor or regent/mayor by virtue of their au- ed and to be executed in the following quarter on thority shall evaluate to disburse post mining the basis of the approved post mining plan. guarantee before approving the disbursement of (4) The report as meant in paragraph (1) shall be post mining guarantee as meant in Article 57. formulated in accordance with Guidance for the (2) The Director General on behalf of the Minis- Formulation of Quarterly Report on the Execution I ter, governor or regent/mayor by virtue of their 46 Business News 8648/1-2-2015 authority may only approve the disbursement of activity to the Minister through the Director Gen- the post mining guarantee along with the interest eral, governor or regent/mayor by virtue of their thereon as meant in paragraph ( 1) in accordance authority. with Guidance for Evaluation of Post Mining as (2) The Director General on behalf of the Minister, contained in Attachment XV, which constitutes governor or regent/mayor by virtue of their au- an integral part of this ministerial regulation thority shall approve the extension of the period as meant in paragraph (2) in no later than 2 (two)

Article 59 years following the expiration of post mining ac- (1) The Director General on behalf of the Minister, tivity. governor or regent/mayor by virtue of their au- (3) Holders of IUP Production Operation and IUPK thority shall conduct site visit in evaluating the Production Operation may not disburse the rest post mining guarantee as meant in Article 58. of post mining guarantee during the extension pe- (2) The site visit as meant in paragraph (1) shall be nod as meant in paragraph (2). done in no later than 15 (fifteen) calendar days (4) Holders of IUP Production Operation and IUPK following the receipt of the report on the execu- Production Operation may only be granted the tion of post mining. disbursement of the rest of post mining guaran- (3) Result of the site visit as meant in paragraph (1) tee if the evaluation of the success has reached shall be written down into account containing 100% (one hundred percent). evaluation of the success of post mining as con- tained in Attachment XVI, which constitutes an Part Three integral part of this ministerial regulation. Stipulation of Third Party

Article 60 Article 61 (1) In the case of holders of IUP Production Operation (1) In the case of holders of IUP Exploration or IUPK and IUPK Production Operation failing to meet the Exploration failing to meet the success criteria for success criteria for the execution of post mining the execution of reclamation in the exploration on the basis of evaluation of report and site eval- phase on the basis of the evaluation of report and uation less than 80% (eighty percent) following site visit as meant in Article 47 dan Article 49, the the expiration of the post mining period, the hold- Director General on behalf of the Minister, gover- . ...— . . . ...._._ _ . ers (yr iur rroauction Uperation and IUPIC Produc - nor or regent/mayor by virtue of their authority tion Operation may submit application for the shall stipulate the third party to execute reclama- extension of the period to settle the post mining tion in the exploration phase by using reclamation Business News 8648/1-2-2015 47 GuVERrIMPIT REGULATioris guarantee in the exploration phase thority evaluates to stipulate the third party. (2) In the case of holders of IUP Production Operation and IUPK Production Operation failing to meet the Article 62 success criteria for the execution of reclamation (1) In the case of holders of IUP Production Operation in the production operation phase on the basis and IUPK Production Operation failing to meet the of the evaluation of the report and site visit as success criteria for the execution of post mining meant in Article 51 and Article 54, the Direc- on the basis of the evaluation of report and site tor General on behalf of the Minister, governor visit as meant in Article 57 and Article 59 less or regent/mayor by virtue of their authority shall than 60% (sixty percent) until the expiration of stipulate the third party to execute reclamation the post mining period, the Director General on in the production phase by using the reclamation behalf of the Minister, governor or regent/mayor guarantee in the production operation phase. by virtue of their authority shall stipulate the third (3) The stipulation of the third party as meant in para- party to execute the post mining. graph (1 ) and paragraph (2) shall be done if the (2) The third party as meant in paragraph (1) shall be reclamation has not reached the success 60% stipulated by method: (sixty percent) after 2 (two) years of evaluation a. the holders of IUP Production Operation and period consecutively. IUPK Production Operation are obliged to (4) The third party as meant in paragraph (1), para- recommend the third part having business li- graph (2), and paragraph (3) shall be stipulated by cense to provide mining service in the post the following methods: mining and reclamation field to the Minister a. the holders of IUP Exploration, IUP Produc- through the Director General, governor or re- tion Operation, IUPK Exploration and IUPK gent/mayor by virtue of their authority; and Production Operation are obliged to recom- b. the Director General on behalf of the Minister, mend the third part having business license to governor or regent/mayor by virtue of their provide mining service in the post mining and authority evaluates to stipulate the third par- reclamation field to the Minister through the ty. Director General, governor or regent/mayor Article 63 by virtue of their authority; and to be continued b. the Director General on behalf of the Minister, governor or regent/mayor by virtue of their au- (R) 48 1 Business News 8648/1-2-2015 w RECLAMATION AND POST-MINING IN MINERAL AND COAL MINING BUSINESS ACTIVITY (Regulation of the Minister of Energy and Mineral Resources Number 7 Year 2014 dated February 28, 2014) [Continued from Business news No. 8648 page 20-481

Article 63 in Article 2; and Holders of IUP Production Operation and IUPK b. the evaluation of the success of reclamation Production Operation shall be prohibited from execut- 100% (one hundred percent) as contained in ing mining activity before reclamation executed by Attachment XI, which constitutes an integral the third party as meant in Article 61 is declared to part of this ministerial regulation. reach the success criteria for reclamation minimally (2) Holders of IUP Production Operation and IUPK 80% (eighty percent) by the Director General on be- Production Operation before granting the land as half of the Minister, governor or regent/mayor by vir- meant in paragraph (1) shall submit application to tue of their authority . the Minister through the Director General, gover- nor or regent/mayor by virtue of their authority CHAPTER VIII to secure approval of the delivery of reclamation DELIVERY OF RECLAMATION LAND land.

Article 64 (3) The delivery of the land as meant in paragraph (1) (1) Holders of IUP Production Operation or IUPK Pro- shall constitute a part of the post mining plan for duction Operation already executing reclamation WIUP Production Operation and WIUPK Produc- in the production operation phase shall be obliged tion Operation. to give land already reclaimed to the entitled par- (4) The Director General on behalf of the Minister, ty in accordance with the provision of legislation governor or regent/mayor by virtue of their au- through the Director General on behalf of the Min- thority shall be obliged to conduct site visit before ister, governor or regent/mayor by virtue of their granting approval of the delivery of the reclaimed authority after fulfilling: land. a. the principles of environmental protection and I (5) Result of the site visit as meant in paragraph (4) management, occupational safety and health I shall be written down into account. 2nd mineral and coal Conservation as meant ) (6) The Director General on behalf of the Minister, Business News 8649-8680/1-7-2015 I 35 GOVERNMENT REGULATIONS governor or regent/mayor by virtue of their au- part of this ministerial regulation. thority shall approve the delivery of the reclama- (2) Holders of IUP Production Operation and IUPK tion land as meant in paragraph (1) in no later Production Operation, before granting the land as than 60 (sixty) days as from the receipt of appli- meant in paragraph ( 1) shall submit application cation for the delivery of reclamation land to secure approval of the delivery of post-mining (7) Responsibility for the maintenance and monitor- land. ing of the land already reclaimed by holders of IUP (3) The delivery of the land as meant in paragraph (1) Production Operation and IUPK Production Opera- shall the whole area of post mining in the whole tion shall be declared ending after the Director WIUP Production Operation and WIUPK Produc- General on behalf of the Minister, governor or re- tion Operation. gent/mayor by virtue of their authority approves (4) The Director General on behalf of the Minister, the delivery of the reclaimed land as meant in governor or regent/mayor by virtue of their au- paragraph (6). thority shall be obliged to conduct site visit before approving the delivery of land wherein post min- CHAPTER IX ing already executed. DELIVERY OF POST MINING LAND (5) Result of the site visit as meant in paragraph (4)

Article 65 shall be written down into account. (1) Holders of IUP Production Operation and IUPK (6) The Director General on behalf of the Minister, Production Operation already finishing post min- governor or regent/mayor by virtue of their au- ing shall be obliged to deliver post mining land to thority shall approve the delivery of the post min- the entitled part in accordance with the provision ing land as meant in paragraph (1) in no later than of legislation through the Director General on be- 60 (sixty) days as from the receipt of application half of the Minister, governor or regent/mayor by for the delivery of post mining land. virtue of their authority after fulfilling: (7) Responsibility for the maintenance and monitor- a. the principles of environmental protection and ing of land already reclaimed by holders of IUP management, occupational safety and health Production Operation or IUPK Production Opera- and mineral and coal conservation as meant tion shall be declared to end after the Director in Article 2; and General on behalf of the Minister, governor or re- b. the evaluation of the success of post mining gent/mayor by virtue of their authority approves 100% (one hundred percent) as contained in the delivery of the reclaimed land as meant in Attachment KU, which constitutes an integral paragraph (6). 36 Business News 8649-8680/1-7-2015

Article 66 graph (2), Article 15, Article 22 paragraph (3), (1 ) IUP Production Operation and IUPK Production Article 23 paragraph (1), paragraph (2), atau Operation having validity period already expiring paragraph (5), Article 25 paragraph (3), Article shall not eliminate the obligation of the holders of 26 paragraph (1 ), paragraph (2), or paragraph (5), IUP Production Operation and IUPK Production Article 31, Article 32, Article 33, Article 34, Ar- Operation to execute post mining. tide 37, Article 38 paragraph (1), paragraph (3), (2) In the framework of executing the post mining as atau paragraph (5), Article 39, Article 40, Article meant in paragraph (1), the Director General on 41 paragraph (1), paragraph (2), or paragraph behalf of the Minister, governor or regent/mayor (3), Article 43 paragraph (1), paragraph (5), atau by virtue of their authority shall issue letter re- paragraph (6), Article 44, Article 45, Article 50, garding the execution of post mining to holders Article 56, Article 61 paragraph (4), Article 62 of IUP Production Operation and IUPK Production paragraph (2), Article 63, Article 64, or Article 65 Operation. shall be subject to administrative sanction. CHAPTER X ADMINISTRATIVE SANCTION Article 68

Article 67 (1) The administrative sanction as meant in Article (1) Holders of IUP Exploration or IUPK Exploration 67 may be in the form of: violating the provision as meant in Article 2 para- a. written warning; graph (1), paragraph (3), or paragraph (4), Article b. suspension of mining activity partly or whol- 3 paragraph (1), Article 4, Article 6, Article 10, ly; and/or

Article 11, Article 12, Article 13, Article 14, Ar- c. revocation of IUP Exploration, IUP Production tide 16, Article 17, Article 18, Article 19 para- Operation, IUPK Exploration or IUPK Produc- graph (3), Article 20 paragraph (1), paragraph (2), tion Operation. atau paragraph (5), Article 28, Article 29, Article (2) The administrative sanction as meant in paragraph 41 paragraph (1) or paragraph (3), Article 42, Ar- (1) shall be imposed by the Director Gneeral on ticle 46, or Article 61 paragraph (4) shall be sub- behalf of the Minister, governor or regent/mayor ject to administrative sanction. by virtue of their authority. (2) Holders of IUP Production Operation or IUPK Production Operation violating the provision as Article 69 meant in Article 2 paragraph (2), paragraph (3), The administrative sanction in the form of paragraph (4), or paragraph (5), Article 3 para- written warning as meant in Article 68 paragraph (1) Business News 8649-868011-7-2015 I 37 letter a shall be imposed maximally 3 (three) times with the period 30 (thirty) calendar days each. CHAPTER XI TRANSITIONAL PROVISION

Article 70 Article 72 (1) In the case of holder sof IUP Exploration, IUP Pro- (1) Reclamation plan and/or post plan already ap- duction Operation, IUPK Exploration or IUPK Pro- proved by the Minister, governor or regent/mayor duction Operation subject to the written warning by virtue of their authority before the enforcement not yet executing their obligation following the of this ministerial regulation shall be declared to expiration of the warning period as meant in Arti- remain effective and the execution of the plans cle 69, the holders shall be subject to administra- shall be adjusted to this regulation in no later than tive sanction in the form of the suspension of the one year as from the promulgation of this regula- mining activity as meant in Article 68 paragraph tion. (1) letter b partly or wholly. (2) Reclamation plans and/or post mining plans sub- (2) The administrative sanction in the form of the mitted by holders of IUP Production Operation, suspension of the mining activities as meant in Contract of Work and Coal Mining Contract of paragraph (1) partly or wholly shall be imposed in Work and not yet securing approval before the a period of 90 (ninety) calendar days at the maxi- enforcement of this ministerial regulation shall be processed in accordance with the provision in this ministerial regulation.

Article 71 The administrative sanction in the form of re- Article 73 vocation of IUP Exploration, IUP Production Opera- Holders of IUP Production Operation, Con- tion, IUPK Exploration or IUPK Production Operation tract of Work and Coal Mining Contract of Work al- as meant in Article 68 paragraph (1) letter c shall ready placing reclamation guarantee or post mining be imposed on holders of IUP Exploration, IUP Pro- guarantee before the enforcement of this regulation duction Operation, IUPK Exploration or IUPK Produc- shall be adjusted to the provision in this regulation in tion Operation not executing the obligation until the no later than one year following the promulgation of expiration of the period of the suspension of mining this regulation. activity partly or wholly as meant in Article 70. 38 1 Business News 8649-8680/1-7-2015 LESUIling CHAPTER XII CONCLUSION Promulgated in Jakarta

Article 74 On February 28,2014 Following the enforcement of this regulation, THE MINISTER OF LAW AND HUMAN RIGHTS OF Regulation of the Minister of Energy and Mineral Re- THE REPUBLIC OF INDONESIA sources Number 18 Year 2008 dated May 29, 2008 sgd on Reclamation and Post Mining shall be revoked and AMIR SYAMSUDIN declared null and void. STATE GAZETTE OF THE REPUBLIC OF INDONESIA

Article 75 YEAR 2014 NUMBER 274 The ministerial regulation shall come into force as from the date of promulgation. For public cognizance, the regulation shall be Editor's Note: promulgated by placing it in State Gazette of the Re- - Due to technical reason, the attachments are not public of Indonesia. published. Stipulated in Jakarta (R) On February 28, 2014 THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA sgd JERO WACIK Business News 8649-8680/1-7-2015 39