ASIATODAY.ID, JAKARTA – The Indonesian government through the Ministry of Energy and Mineral Resources will conduct a priority auction for three Special Mining Business License (WIUPK) Blocks for metallic minerals.
The three nickel mining blocks are the Bulubalang, North Lingke and Pongkeru blocks, all of which are located in East Luwu Regency, South Sulawesi Province.
Head of the Bureau of Communications, Public Information Services and Cooperation, Ministry of Energy and Mineral Resources, Agus Cahyono Adi said that the auction was carried out by close bidding on the WIUP/WIUPK application.
“The auction is carried out with written bids without the presence of participants, carried out online on the closed WIUP/WIUPK auction application,” he said, quoted from the website of the Ministry of Energy and Mineral Resources, Thursday, April 8 2024.
According to Agus, the priority auction was carried out because the bids for the Bulubalang, Lingke Utara and Pongkeru blocks were declared unfulfilled.
Previously, these three blocks had been offered on a priority basis to State-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD).
“Furthermore, the three WIUPK Blocks will be implemented on a priority basis to BUMN or BUMD which have previously expressed interest in managing them,” he added.
The details of the three WIUPK blocks that will be subject to priority auction are as follows:
- Bulubalang
Area: 1,665 ha
Commodity: Nickel
Information data compensation: IDR 5,972,500,000
- North Circle
Area: 943 ha
Commodity: Nickel
Information data compensation: IDR 3,378,300,000
- Pongkeru
Area: 4,252 ha
Commodity: Nickel
Information data compensation: IDR 14,409,850,000
Priority auction schedule for the Bulubalang, Lingke Utara and Pongkeru Blocks:
- Announcement of re-auction: 17 April – 16 May 2024
- Registration and submission of tender requirements documents: 17 – 22 May 2024
Procedures and requirements for mineral and coal WIUP auctions can refer to the Decree of the Minister of Energy and Mineral Resources Number 258.K/MB.01/MEM.B/2023. The auction is carried out through the mineral and coal WIUP/WIUPK Auction application which can be accessed via the website: https://minerba.esdm.go.id/lelang.
Prospective participants register themselves in the mineral and coal WIUP/WIUPK Auction application using a BKPM OSS account at the start of the auction by uploading softcopies of administrative, technical and environmental management and financial requirements documents, and submitting documents for the placement of serious guarantees in closed and sealed covers to auction committee in the Integrated Information Services Room of the Directorate General of Minerals and Coal on working days and hours during registration and submission of tender requirements documents.
For information, previously PT Sulsel Citra Indonesia (PT SCI) together with PT Aneka Tambang, (Persero) Tbk had expressed their interest in managing the three blocks. The Minister of Energy and Mineral Resources has ordered coordination of the granting of WIUPK between BUMN and BUMD through letter No. T-703/MB.04/MEM.B/2023 dated 4 September 2023 concerning Coordination of the Granting of Mining Business Permit Areas (WIUPK) for Bulubalang Block, WIUPK for North Lingke Block, and WIUPK for Pongkeru Block, with a coordination period of 60 (sixty days) calendar day.
Both proposed the formation of a joint venture entity, but failed to form. The request for an extension of time for the process of forming a joint venture entity submitted by these two business entities cannot be accepted.
Furthermore, in accordance with the provisions in the Regulation of the Minister of Energy and Mineral Resources Number 16 of 2021 and the Decree of the Minister of Energy and Mineral Resources Number 258.K/MB.01/MEM.B/2023, the formation of a joint venture entity in the context of granting WIUPK on a priority basis has been regulated for 90 (ninety) calendar days and not regulated regarding extension of the period. (ATN)
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