Indonesia has issued new regulations on applying to expand licensing areas for coal and mineral mines, part of efforts to optimize resources, the energy ministry said in a statement on November 7.

The new rules, outlined in a decree signed by the Minister of Energy and Mineral Resources (ESDM), revoke previous regulations deemed not comprehensive enough to guide applications to expand mining business permit areas or special mining permit areas.

The new decree adds points on the allocation of applications for expansion, including to optimize potential reserves in the expansion area or to optimize marginal deposits indicated by exploration data.

Expanded licensing areas will be a maximum 25,000 hectares for metallic mineral permits and 15,000 hectares for coal permits, while special coal and mineral permits will follow sizes recommended by the minister.

Areas that can be proposed for expansion must border initial permit areas and show resource continuity, the decree says. They must not overlap with other permits, reserved mining areas, proposed licensing areas or territories under investigation.

Mining permit holders seeking to expand areas must be listed in the ESDM's permit database, have produced for at least three straight years and shown good conservation, and have explored their initial areas.

Permit holders must also obtain the ministry's approval for expansion plans before submitting applications.

Indonesia is the world's biggest exporter of thermal coal and has significant resources of metals like nickel, copper and bauxite.

(Writing by Alex Guo  Editing by Emma Yang)
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