Govt to Lure Investors with 11 Mining Concession Offerings

The Energy and Mineral Resources Minister is auctioning off 11 mining business permits (WIUPs) for metallic minerals and coal spread across five provinces. The mining blocks offered consist of gold, nickel, iron ore, galena, and coal. The Energy and Mineral Resources Minister’s Directorate General of Minerals and Coal stated that the auction will be conducted in writing with registration from Dec 6 to Dec 8.

The government has set participant criteria for blocks with an area ≤ 500 hectares to include local Regional-Owned Enterprises (BUMDs), micro and small enterprises, cooperatives, or individual companies. Blocks with an area > 500 hectares can be bid on by State-Owned Enterprises (BUMNs), BUMDs, medium and large enterprises, foreign investors, and cooperatives.

The areas to be auctioned are as follows:

1. Mining business permit of Mulya Agung Block in Kotawaringin Timur and Katingan, Central Kalimantan, covering an area of 97,144 hectares containing iron ore. Compensation value for data and information: Rp 145,722,737,500.
2. Mining business permit of Ulu Rawas Block in North Musi Rawas, South Sumatra Province, covering 6,707 hectares containing iron ore. Compensation value for data and information: Rp 10,074,000,000.
3. Mining business permit of Bayung Lencir Block in Musi Banyuasin, South Sumatra Province, covering 11,290 hectares, containing coal with a compensation value for data and information of Rp 22,580,355,000.
4. Mining business permit of Lingga Bayu Block in Mandailing Natal, North Sumatra Province, covering 4,667 hectares, containing gold with a compensation value for data and information of Rp 16,802,900,000.
5. Mining business permit of Merapi Barat Block in Lahat and Muara Enim, South Sumatra Province, covering 326 hectares, containing coal with a compensation value for data and information of Rp 2,254,835,000.
6. Mining business permit of Tumbang Nusa Block in Kapuas, Central Kalimantan, covering 7,169 hectares, containing coal with a compensation value for data and information of Rp 14,338,162,500.
7. Mining business permit of Pasiang Block in Polewali Mandar, West Sulawesi, covering 1,867.7 hectares, containing galena with a compensation value for data and information of Rp 2,804,845,000.
8. Mining business permit of Pumlanga Block in North Halmahera, North Maluku Province, covering 3,175 hectares, containing nickel with a compensation value for data and information of Rp 13,374,440,000.
9. Mining business permit of Foli Block in North Halmahera, North Maluku Province, covering 2,728 hectares, containing nickel with a compensation value for data and information of Rp 9,821,240,000.
10. Mining business permit of Lillief Sawai Block in North Halmahera, North Maluku Province, covering 615.7 hectares, containing nickel with a compensation value for data and information of Rp 4,433,040,000.
11. Mining business permit of Natai Baru Block in Kotawaringin Timur, Central Kalimantan, covering 6,674 hectares, containing coal with a compensation value for data and information of Rp 13,391,175,000.