PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 567
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
42. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
j. Mining Law No. 42009 continued
In February 2010, the Government released two implementing regulations for Mining Law No. 42009, i.e. Government Regulation No. 222010 and 232010 “GR No. 22” and “GR No. 23”. GR No. 22 deals with the
establishment of the mining areas under the new IUP. GR No. 23 provides clarifications surrounding the procedures to obtain the new IUP. GR No. 23 indicates that existing CCAs will be honoured by the Government, although any
extension of existing CCAs will be through the issue of an IUP. The Government of Indonesia Indonesia further amended GR No. 23 by issuing, among others, Government Regulation
No. 242012 on 21 February 2012 “GR No. 24” and later by issuing Government Regulation No. 12014 dated 11 January 2014 “GR No. 1” and Government Regulation No. 772014 dated 14 October 2014 “GR No. 77”, which
regulates the transfer of IUP’s, divestment, and mining areas. The Group is closely monitoring the progress of the implementing regulations for the Law and will consider the impact
on its operations, if any, as these regulations are issued.
k. Ministerial Regulation No. 282009
In September 2009, the MoEMR issued Ministerial Regulation No. 282009, which, among others, requires the Directorate General’s approval to use an affiliate as a mining services contractor. The regulation provides a definition of
affiliates and provides exceptions only when there are no similar mining services companies in the regencycity andor province, or when there are no other capable mining service companies operating in the area. The regulation requires
mining concession companies under their existing contracts to conduct all coal extraction activities themselves within three years after the issue of the regulation, except for new contracts where the obligation is effective from the date of
the contract.
Accordingly, Adaro will be required to develop its own extraction capabilities in lieu of relying on third party contractors. The regulation provides a three-year transition period for changes to existing arrangements.
The Director General of Mineral, Coal and Geothermal has recently issued Director General Regulation No. 376.K30DJB2010 dated 10 May 2010 regarding the procedures and requirements for requesting approval for
involving a subsidiary andor an affiliate in mining services activities “Dirgen Regulation”. The Dirgen Regulation further regulates Ministerial Regulation No. 282009, specifically regarding the procedures and requirements for the
involvement of a subsidiary andor an affiliate in mining services activities.
On 8 October 2012, the MoEMR’s Ministerial Regulation No. 282009 was partially amended with the MoEMR’s Ministerial Regulation No. 242012, which regulates that Adaro may lease equipment from any mining supporting
companies holding the Certificate of Registration issued by the Minister, Governor, or Regent in accordance with the authorities.
Management believes that the Group has complied with the MoEMR’s Ministerial Regulation No. 282009 that requires Adaro to carry out coal extraction activities itself as well as the MoEMR’s Ministerial Regulation No. 242012
regarding equipment leases. Neither regulation inflicts any impact or substantial change upon the structure of Adaros operations.
l. Ministerial Regulation No. 342009
In December 2009, the MoEMR issued another regulation, Ministerial Regulation No. 342009, which provides a legal framework requiring mining companies to sell a portion of their output to domestic customers the “Domestic Market
Obligation” or “DMO”. On 23 June 2014, the Director General of Mineral and Coal issued a letter No. 111836DJB2014 regarding the
implementation of DMO for year 2014 “the Letter”, which stated that the Ministerial Regulation No. 342009 is under revision. Adaro is closely monitoring the progress of the revision.
219
AdARo ENERgy 2014 ANNuAl REPoRT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 568
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013
Expressed in thousands of US Dollars, unless otherwise stated
42. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
m. Ministerial Regulation No. 172010
In September 2010, the MoEMR issued Ministerial Regulation No. 172010 on the Procedure for the Setting of Benchmark Prices For Mineral and Coal Sales, which regulates that the sale of coal shall be conducted with reference
to the benchmark price issued by the Government.
On 3 March 2011, the MoEMR issued Ministerial Decision No. 0617.K32MEM2011 on The Benchmark Price for PT Perusahaan Listrik Negara Persero “PLN” for the Operation of Coal Fired Power Plants.
On 24 March 2011, the Director General of Mineral, Coal and Geothermal issued Director General Regulation No. 515.K32DJB2011 on the Formula for Setting the Coal Benchmark Price.
On 26 August 2011, the Director General of Mineral and Coal “DGoMC” issued Director General Regulation No. 999.K30DJB2011 on the Procedure for Determining the Adjustment Coal Benchmark Price. On 21 March 2013,
the Director General of Mineral and Coal issued Regulation No. 644.K30DJB2013 for amendment of Director General of Mineral and Coal No. 999.K30DJB2011 for Determining the Adjustment Coal Benchmark Price.
Management believes that the the Adaro has complied with the requirements of the regulations mentioned above.
n. Ministerial Regulation No. 252013
