Posted on 20 May 2024
Vale Indonesia has officially received an extension of its operating permit for the period up to 28 December 2035, Kallanish notes.
The firm says in a statement that the extension is following the issuance of a Special Mining Business Permit (IUPK) in the name of PT Vale. The IUPK, received by the company on 13 May provides legal certainty for the company to operate within its concession area and to execute its business’ growth strategy.
Based on the permit, PT Vale is obligated to complete the construction of its new processing and/or refining facilities, including further downstream facilities, within the stipulated timeline.
These developments will be conducted in accordance with the applicable laws and regulations, feasibility studies, and the company’s policies and practices.
As an IUPK holder, PT Vale is now subject to payments of IUPK profit sharing of 10% of its net income to the government of Indonesia under prevailing regulations. This will increase the company’s contribution to the state, as well as to the regions.
The permit is valid for the remaining term of the contract of work (28 December 2025), as well as for the first extension period of ten years (until 28 December 2035). The IUPK can be further extended, for consecutive 10-year periods.
Source:Kallanish
