Mining Rules Will Be Revised, This Is An Ideal Time To Give Mining Permits

Mining (photo: dock. Antara)

JAKARTA - The government is known to be revising Government Regulation (PP) number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

As for this revision, the government will remove the deadline for submitting a contract extension from the previous 5 years or at the latest 1 year before the expiration of the business license.

PT Freeport Indonesia (PTFI) President Director Tony Wenas revealed the ideal time for the company to extend the company's license.

Tony said the mining industry is a long-term investment so that if the extension of the permit is carried out within 5 years, it is not possible.

Tony detailed that in the mining process, his party needed to explore drilling and mobilize tools and drilling in detail, it took up to 3 years.

"And from there we made a design of the mining model of 2 to 3 years," Tony said in the Mining Zone quoted Monday, March 25.

Tony continued, after doing the department, mining companies need to make details regarding the feasibility study which takes 2 to 3 years and then develop of the mine.

"So a total of 12 to 15 years in the block caving mine like us. But when compared to open nickel mining, it might be different. But this is hard rock mining which happens to be underground," explained Tony.

Tony also gave an example, Freeport's underground mine, which began to be mined since 2019, has actually started investing since 2004 aka 15 years earlier.

"We need 15 years before we can mine him. So if we just apply for an extension and it is approved by 2036, we can only mine it in 2050. So there is a break," Tony explained.

For this reason, the point in the PP revision is that the extension of mining permits does not have to be carried out 5 years before the permit ends.

"So that we from investors need certainty, we invest for exploration, we have received an extension," concluded Tony.