PT Bayan Resources Tbk (BYAN), reported that one of its subsidiaries, PT Bara Karsa Lestari (BKL), has ceased mining activities due to the expiration of the mining business license (IUP) that was not renewed.
Bayan Resources management explained that the IUP for the subsidiary, covering an exploration area of 7,000 hectares in East Kalimantan, has ended and is not recorded in the Directorate General of Mineral and Coal’s database.
“The indirectly owned subsidiary decided not to continue mining activities in its WIUP, and therefore, BKL did not make efforts to extend the IUP,” the management said, quoted on Monday (16/10/2023).
BKL’s decision not to extend the IUP was based on the report of coal mining open-cut reserves and resources as of April 1, 2022. The coal reserves held by BKL were reported as nil, and the WIUP location was in a forest area.
Earlier, in the disclosure of exploration activity reports for the second quarter of 2023, BYAN mentioned that BKL was in the process of extending its exploration IUP.
Apart from BKL, there are two other subsidiaries in the process of extending their IUPs, namely PT Mahakam Bara Energi and PT Mahakam Energi Lestari. Meanwhile, four subsidiaries are in the production stage with IUPs.
Furthermore, three subsidiaries are still in the process of obtaining the governor’s recommendation for forest area utilization permits.
During the second quarter of 2023, BYAN allocated exploration funds amounting to USD 637,429.63 or approximately IDR 9.56 billion (JISDOR exchange rate of IDR 15,000) for five subsidiaries.
In more detail, PT Gunungbayan Pratamacoal Blok II absorbed USD 381,523.23 for shallow drilling activities at 112 points and deep drilling at 47 points with a total depth of 10,432.55 meters.
Next, PT Perkasa Inakakerta incurred USD 48,377.40 for deep drilling activities at 15 points with a total depth of 1,355.50 meters. PT Bara Tabang conducted shallow drilling at 22 points, deep drilling at 14 points, with a total depth of 368.20 meters, costing USD 12,403.43.
Subsequently, PT Brian Anjat Sentosa, with USD 468,822.09, successfully conducted exploration with deep drilling at 14 points and shallow drilling at 22 points, with a depth of up to 2,338.50 meters.
Finally, PT Tiwa Abadi spent USD 128,303.48 for exploration activities with deep drilling at 10 points and a depth of up to 2,753.65 meters.
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