Post on 21-Nov-2020
Legal Status,
Rights &
Obligations,
Privileges
COAL CONTRACT OF WORK,
CONTRACT OF WORK &
MINING BUSINESS LICENSES
ADRI KURNIA SH., MH., LLM.
WAKIL KETUA UMUM APBI BIDANG HUKUM DAN
PERUNDANG-UNDANGAN
DISKUSI PUBLIK: MENAKAR RENCANA REVISI UU NO. 4
TAHUN 2009 TENTANG PERTAMBANGAN MINERAL DAN
BATUBARA
AUL A UN I VE RS I TA S I S L AM B AN DUN G , 10 TH F EB RUA RY 2 020
CURICULUM VITTAE
Adri Kurnia Ibnu, S.H., M.H., L.LM., ACIARB
General Manager Legal PT Kaltim Prima Coal
(adri.Kurnia@kpc.co.id, adri.kurnia@adrikurnia.com - 08115808572)
Education Background:
•SMU Taruna Nusantara, Magelang (1996 – 1999)
•Law School of Padjadjaran University (S.H.,2005)
•Law School of University of Indonesia (M.H., 2014)
•Murdoch University, Perth, Western Australia (non degree – InternationalArbitration, 2011)
•Leiden University Law School, the Netherlands (L.LM., 2017)
Working Experience:
•Adnan Buyung Nasution & Partners
•Bahar & Partners
•Gani Djemat & Partners
•Makes & Partners
•Makarim & Taira
•PT Kaltim Prima Coal (2008 –now)
Associations & Organisations:
•Chartered Institute of Arbitrators, London, UK (Associate)
•Deputy Chairman of APBI (Head of Legal and Regulatiory Division), 2018-2021
•Head of Legal Committee at the Indonesian Mining Association (IMA, 2018-2020)
•Vice Chairman of Strategic Policy at Perhapi (2018 –2021)
Invited as speakers in the latest national, events:
Petromindo: One-Day Conference on the GovernmentRegulation Number 24/2012 on the Implementation of Coaland Mineral Mining Business activities, JW Marriott HotelJakarta, 29 March 2012
Mining from A to Z, Business Practitioners and Lawyers'Experience, Hilton Hotel Bandung 8 -10 February2012
Strategic Asia: Generic Rules or Commodity basedRegulations in Promoting Higher Domestic Value Added inNatural Resources Use: Lesson from the Coal Industry, LeMeridien Hotel, Jakarta 2 February2012
Internationalevent:
International Financial Law Review: Indonesia Forum -Negotiating the Legal Landscape, Fullerton HotelSingapore, 23 November 2010
Field of expertise:
•Mining
•Energy
•Investments
•Project Financing
•EPC Contracts
•Mining Tax Disputes
LEGAL STATUS & CONSTRUCTION
COAL CONTRACT OF WORK
& CONTRACT OF WORK
CCOW & COW
Are agreements endorsed by the Government of Indonesia through a process
requiring consultation with the House of Representatives as required by Article 10(3)
of Law 11/1967. The process is mirroring the legislation making process
Subject to Indonesian Civil Code Book 3 – Contract Law
Parties to the Contract have equal position to each other
An Agreement can not be amended, unless it is upon the parties to the agreement’s
consent
IUP – KP/Mining Authorization
IUP/KP is granted by the Government authority through beschikking or one sided
determination given by the law to a public authority
Not a mutual agreement between the Government official and investor, but solely the
decided by the Government official in accordance with his authority in accordance
with the prevailing laws
LEGAL STATUS
CCOW & COW / IUP
CCOW/COW APPLICATION PROCESS
PRESIDENT
CAPITAL INVESTMENT
COORDINATING BOARD
MINISTER OF ENERGY
& MINERAL RESOURCES
HOUSE
OF REPRESENTATIVES
APPLICANT
BANK
DIRECTOR GENERALMINERAL, COAL & GEOTHERMAL
DIRECTOR – MINERAL & COAL
ENTERPRISE DEVELOPMENT
NEGOTIATOR: CENTRAL GOVERNMENT
MINISTER OF FINANCE
DIRECTOR GENERAL OF TAXES
PROVINCIAL GOVERNMENT
LOCAL GOVERNMENT
OTHER STAKEHOLDERS
8B
10 9
7B 8A
7A
11
6
2A
1A
1 1B 2
3
5
Clause 1338 of Indonesian Civil Code states all duly executed contract shall be the law stipulating relationship
between the parties
A duly executed CCOW/COW shall be regarded as a law specifically stipulating relationship between the
Government of Indonesia and each party thereto in term of mining activities for relevant commodities as
agreed in each contract
The law made between Government of Indonesia and each CCOW/COW holder shall bind the parties
In case a general law made by the Government is in conflicting with the specific law made by the Government
each CCOW/COW holder, to the extent relationship between the Government and each CCOW/COW holder the
specific provisions of CCOW/COW shall prevail (Lex Specialis Principle?)
Under CCOW/COW Indonesian Government subject to provision of Contract Law under Indonesian Civil Code
having consequences it shall use provisions of Contract law to enforce its right under the contract
CONSTRUCTION OF CCOW/COW
UNDER INDONESIAN CIVIL CODE
Certain conditions in the CCOW and/or COW are nailed down or
grandfathered
The items stipulated is final, or in case a new rule exists the provisions of
CCOW/COW regarding the same shall continue to apply
If there differences occur between CCOW/COW and the prevailing laws, the
provisions of CCOW/COW shall prevail
NAIL DOWN – GRANDFATHER CLAUSE –
LEX SPECIALIS
Provisions of CCOW & COW Provisions of Law 4/2009
Contract shall not be amended, annulled, or
modified in any respect except by mutual consent
in writing of the parties
At the end of fifth year of Operating Period and
thereafter at 5 year intervals the parties shall
consult each other in case any revision required to
the contract; Consultation will be in good faith and
failure by the parties to agree on any revision shall
not constitute a dispute
Contractor shall process or to produce a marketable
products
Contractor shall prepare a feasibility study with
respect to possible smelter in Indonesia
Contractor acknowledge Government’s policy to
encourage domestic processing of all its natural
resources into final product where feasible
At the end of Exploration Period Contractor the
Contractor shall not be required to relinquish more
than 75% of its initial area
Article 169 (b) of Law 4/2009: All existing
CCOW/COW shall be adjusted in conformity to Law
4/2009, except for those relating to state revenue
Article 169(c): Provision of CCOW/COW relating to
state revenue shall not be adjusted in conformity to
Law 4/2009, unless conducted in order to increase
state revenue
Article 170: COW holders already in production
phase shall conduct domestic processing and
refining not later than 5 years as of the enactment
of Law 4/2009
• Article 171: CCOW and COW holders in exploration,
or feasibility study, construction or production to
submit long term plan over all
CCOW, COW AND LAW 4/2009H O W I S T H E L E G A L S TAT U S O F C C O W / C O W A F T E R T H E E N A C T M E N T O F L AW 4 / 2 0 0 9 ?
GENERAL COMPARISON
CCOW/COW, KP & IUP
Matters CCOW/COW IUP (Metallic Minerals & Coal)
Form Agreement License/permit
Basis Parties’ consent Judgment by the authorized governmentOfficial
Amendment On parties’ consent By the authorized government official based on the
prevailing laws
Mining activity phases All phases of mining activities given and guaranteed in
the contract
Permit holders must apply separate licensefor
each phase of mining activities
Royalties or production sharing For minerals depend on each CCOW
For coal Government share 13.5% FOB basis
For mineral vary (ex gold 3.75%)
For Coal depends on the Calorific Value, butnot
higher than 7% FOB price
Taxes The rate is vary from 30% to 45% Subject to prevailing tax laws, currently25%
Other financial obligations Nailed down as written in the contract Subject to prevailing laws
Term 30 years as of operating period Maximum 20 years as of Production IUP issuance
Initial Area 2nd and 3rd CCOW up to 100,000 hectares
COW up to 250 hectares (some earlier COW larger)
Metallic minerals up to 100,000 hectares
Coal up to 50,000 hectares
Assets ownership Government or CCOW/COW holder Permit holder
Dispute settlement forum International/Domestic Arbitrations Court of Administrative
COMPARISON CCOW/COW & IUP
CCOW/COW Mining Authorization (KP) IUP
• CCOW/COW is granted based on
application from investor
• Application submitted on behalf of
investor whether foreign or domestic
investors
• Company to be the party to the
contract established after principle
approval is given
• The CCOW company must specifically
having line of business to conduct
mining activities as provided under
the contract
• Contractor has the sole right to
conduct mining activities for
coal/minerals in the contract area
• CCOW/COW is a comprehensive
rights of mining activities from
General Survey, Exploration,
Exploitation, Transportation and
Sales.
• Commodities divided into 3
categories: Strategic, Vital, and non-
strategic/vital (due to their functions)
• One CCOW/COW for one company
• KP is granted based on application
made by applicant
• The applying company shall be
established from the beginning
before applying KP (in case applicant
is a company)
• The company shall specifically having
line of business to conduct mining
activities
• Company shall apply license for each
stage General Survey, Exploration,
Exploitation (transportation and sales
activities included)
• Commodities divided into 3
categories: Strategic, Vital, and non-
strategic/vital (due to their functions)
• A company may own more than one
KP
• IUP is granted to the winner in the
auction for relevant mining area (for
coal & metallic minerals)
• The company shall be established
before joining the auction and shall
be engaged in mining business
• Two types of licenses, IUP Exploration
and IUP Production
• IUP Exploration consists of General
Survey, Exploration, Feasibility Study
activities
• IUP Production consists of
Construction,
Exploitation/Production,
Transportation and Sales activities
• IUP holder for exploration is
guaranteed to be given IUP
Production
• Commodities divided into 5
categories: radioactive minerals,
metallic minerals, non-metallic
minerals, stones, and coal (due to
their intrinsic elements)
• One IUP for one company, except for
public companies
THE AWARD OF MINING RIGHT
CCOW/COW Mining Authorization (KP) IUP
For early generation CCOW/COW, the
area is granted as necessary required
according to geophysical data provided
by investor, but lastly it is stipulated
maximum 250,000 hectares to minerals
and 100,000 hectares to coal
At the latest of exploration period,
Contractor shall only retain not more
than 25% of initial area given under each
CCOW/COW (mandatory relinquishment)
and thereafter it is right of the Contractor
to voluntarily relinquish its area which
shall affective 30 days as of notification
date
Contractor shall recognize the existing
KPs already issued by Government
before the execution of CCOW/COW
Right of first refusal in case the
Contractor discovers other minerals
Right of first refusal to enlarge its
contract area if coal/mineral deposits
extending beyond CCOW/COW area as
long as it doesn’t infringe other exclusive
mining right given by the Minister
A KP mining area for General Survey
≤5,000 hectares, and a company cannot
have more than 25,000 hectares for
General Survey all over Indonesian mining
territory (a company can hold more than 1
KP)
A KP mining area for Exploration ≤2,000
hectares, and a company cannot have
more than 10,000 hectares for Exploration
all over Indonesian mining territory (a
company can hold more than 1 KP)
A KP mining area for
Exploitation/Production ≤1,000 hectares,
and a company cannot have more than
5,000 hectares for Exploitation all over
Indonesian mining territory (a company
may hold more than 1 KP)
Right of first refusal upon discovery of
deposits other than permitted in the KP
license
Mining Business License Area (WIUP) for
coal and metallic mineral is granted
through auction
IUP Exploration area for coal within 5,000
– 50,000 hectares, for IUP Production
≤15,000 hectares
IUP Exploration for metallic mineral within
5,000 – 100,000 hectares, for IUP
Production ≤25,000 hectares
IUP Exploration for non metallic mineral
within 500 – 25,000 hectares for IUP
Production ≤5,000 hectares
IUP Exploration for stones within 5 – 5,000
hectares, for IUP Production ≤1,000
hectares
First right of refusal without auction for
discovery of other commodities
Before starting mining activities, IUP
holder to compensate existing right over
land through lease or sale arrangement or
any other arrangement as agreed by the
parties
MINING AREA
...CCOW/COW …Mining Authorization (KP) …IUP
CCOW/COW holders shall
compensate all rights over the land
within the mining activities area (Art
26 Law 11/1967)
Compensation in the form of
acquiring the right over the land or
compensation only for the period the
land/building can not be used by the
owner (Art 25(1) Law 11/1967
Rights over land on which a mining
authorization has been granted
cannot be issued to any other party
unless agreed by the Minister of
Mines and Energy (Art 27(5) Law
11/1967)
Anyone owning right over a plot of
land in which a mining authorization
is granted shall allow mining
activities to be conducted by fair
compensation (Art 26 Law 11/1967
KP holder shall compensate all right
over the land by acquiring the right or
only for the period such right over land
cannot be used by the owner
Rights over land on which a mining
authorization has been granted cannot
be issued to any other party unless
agreed by the Minister of Mines and
Energy (Art 27(5) Law 11/1967)
Anyone owning right over a plot of land
in which a mining authorization is
granted shall allow mining activities to
be conducted by fair compensation (Art
26 Law 11/1967
…MINING AREA
CCOW/COW Mining Authorization (KP) IUP
Contractor incorporated and
domiciled in Indonesia
(except for the 1st COW)
Contractor may use
subcontractor (mining
service companies) in its
mining activities as
necessary required
Contractor may use its
affiliates in its mining
activities on arm’s length
basis transaction
Appointment subcontractor
doesn’t release Contractor
from its obligation under the
contract
Incorporated Indonesian
entity or individual
May use contractor (mining
service companies) in
conducting mining activities
No restriction in using
affiliates
No arm’s length basis
requirement
Incorporated Indonesian
entity
May use contractor (mining
service companies) in its
mining activities
Coal and mineral getting
activities are not allowed to
be conducted by mining
service companies
Affiliate restriction, unless
approved by the Minister
Appointment of mining
service companies in its
mining activities shall not
release IUP holder from its
liability under the mining
regulations
MODUS OPERANDI
CCOW/COW Mining Authorization (KP) IUP
To be submitted before the each
calendar year for Government
approval
In case Government doesn’t
approve the Work Plan and
Budget, the previous approved
Work Plan and Budget shall be
used as the basis
Work Plan and Budget can be
amended in case of
extraordinary circumstances
Minimum spending
commitment
Shall furnish: (a) Quarterly
General Survey report; (b)
Quarterly Exploration report; (c)
monthly production report; (b)
quarterly production report; (c)
annual production report; (d)
annual financial statements
Work Plan and Budget
presented to the Government at
the beginning of each KP
issuance
No firm commitment on
minimum spending for General
Survey or Exploration
Shall furnish: (a) Quarterly
General Survey report; (b)
Quarterly Exploration report; (c)
monthly production report; (b)
quarterly production report; (c)
annual production report; (d)
annual financial statements
Work Plan and Budget
presented to the Government at
the beginning of each KP
issuance
No firm commitment on
minimum spending for General
Survey or Exploration
Shall furnish: (a) Quarterly
General Survey report; (b)
Quarterly Exploration report; (c)
monthly production report; (b)
quarterly production report; (c)
annual production report; (d)
annual financial statements
WORK PROGRAM, EXPENDITURES AND
REPORTS
CCOW/COW Mining Authorization (KP) IUP
30 years (excluding
Construction Period) and
extendable as agreed by
the parties
Commencement after
reaching 70% average
daily throughput of
designed capacity of
designed facility but not
later than 6 months of
operating facilities
30 years (including
Construction Period) and
extendable 2x10 years
Commencement after
the issuance of KP
Exploitation
20 years (including
construction period) and
extendable 2x10 years
Commencement after
issuance of IUP
Production
OPERATING PERIOD
CCOW/COW Mining Authorization (KP) IUP
For coal 13.5% of total
coal produced
For minerals as agreed
in the COW
Corporate tax as agreed
in each CCOW/COW
ranging from 30% - 45%
Royalties as determined
by the Government from
time to time (lastly by
Government Regulation
45/2003)
Coal royalties (Coal
Production Proceeds –
DHPB) ranging from 3% -
7% depends on the
Calorific Value of coal for
open cut mining and 2%
- 6% for underground
mining
Mineral royalties lastly as
stipulated in Government
Regulation 45/2003
Royalties determined by
the Government from
time to time (lastly by
Government Regulation
9/2012
Coal royalties (Coal
Production Proceeds –
DHPB) ranging from 3% -
7% depends on the
Calorific Value of coal for
open cut mining and 2%
- 6% for underground
mining
Mineral royalties lastly as
stipulated in Government
Regulation 3/2012
TAXES, ROYALTIES, PRODUCTION
SHARING
CCOW/COW Mining Authorization (KP) IUP
Right to export limited by
Indonesian national policy
and not impairing obligation
of Contractor under relevant
coal supply agreements
with third parties
Under CCOW the
Government may appoint
Contractor as its selling
agent under certain
commercial arrangement
acceptable to the parties
Ownership passes to
Contractor at the point of
delivery
Right to export due to
restriction by the Minister of
Mines and Energy
Domestic Market Obligation
determined by the Minister of
Energy and Mineral
Resources
MARKETING
CCOW/COW Mining Authorization (KP) IUP
Materials, supplies, plant and
equipment imported under import
facilities, exemption or
postponement of import duties
and tax
To some contracts (CCOW 1st
Generation) materials, supplies,
plant and equipment shall become
the property of the Government
when landed in Indonesian port of
import or purchased locally
Contractor is free to enter into any
arrangement in relation to usage
of third parties’ belongings to
support its mining activities
Imported items shall be re-export
due to its import term
If sold domestically all import
duties, levies and taxes shall be
paid in accordance with the
prevailing laws
Importation in accordance with the
prevailing import regulations
Materials, supplies, plant and
equipment belong to the KP holder
Importation in accordance with the
prevailing laws and regulations
Materials, supplies, plant and
equipment imported belong to IUP
holder
EQUIPMENT, IMPORT - EXPORT
CCOW/COW Mining Authorization (KP) IUP
Allowed to keep books
and records in USD
Government (or its
representatives) has
right to inspects books,
records, and accounts
In accordance with the
prevailing laws (in
Rupiah unless for certain
purposes as approved by
the Minister of Finance)
Inspection by the
Government in
accordance with the
prevailing laws
In accordance with the
prevailing laws
Inspection by the
Government in
accordance with the
prevailing laws
BOOKS, ACCOUNTS AND AUDITS
CCOW/COW Mining Authorization (KP) IUP
All payments to the Government of
Indonesia to be made in USD or
other currency as agreed by the
parties
Some Contractors have the right to
place the proceeds of sale of coal
in a bank outside of Indonesia
No obligation for Contractor to use
LC
Has the right to make payment in
USD or any other currency other
than Rupiah to its suppliers or
subcontractors
All investment remittance (equity
capital or loan capital) to be
deposited in PMA account in
foreign exchange bank in
Indonesia
Right to repatriate or to remit
abroad certain funds in
accordance with the prevailing
investment law
All payments to the Government in
accordance with the prevailing laws
Coal sales proceeds to paid in
account at bank in Indonesia
All payments to Indonesian
Government in accordance with
prevailing laws and regulations
Coal sales proceeds and loan to be
paid/received in account at bank in
Indonesia (BI Regulation
13/20/2011)
Repatriation of funds abroad to be
conducted in accordance with the
investment laws
PAYMENTS AND CURRENCY
CCOW/COW Mining Authorization (KP) IUP
Contractor has the sole right to enter
into CCOW/COW area for purpose of
mining activities designated by each
contract
Contractor has the sole right to
remain with in the contract area
Contractor has the right to construct
facilities deemed necessary for
supporting its mining activities and
notify the Government of the
construction
Contractor is given the right to
construct, right of way, right to lay or
pass on, over or under land or water,
any roads, railways, pipes, pipelines
etc.
The use and occupancy areas covered
by plans where mining supporting
facilities are constructed shall not
subject to any payment by contractor
of levies
Government to assist the Contractor
by supplying at Contractor’s request
necessary transportation, security
protection
Right to construct facilities, right of
ways, easements, and other necessary
support from the Government are given
in accordance with the general
prevailing laws and regulations
Right to construct facilities, right of ways,
easements, and other necessary support
from the Government are given in
accordance with the general prevailing
laws and regulations
ENABLING PROVISIONS
CCOW/COW Mining Authorization (KP) IUP
Contractor has the right to take and
use from CCOW/COW area such
timber (for construction purposes),
soil, stone, sand, gravel, lime,
gypsum, water and other products
and material necessary for its mining
operations
Contractor has the right to clear away
and remove such timber, overburden
and other obstruction for mining
operations unless such right already
provided to other parties by the
Government
Contractor has the right to acquire
and operate radio communications,
helicopters, other air craft and other
facilites and equipment
… ENABLING PROVISIONS
CCOW/COW Mining Authorization (KP) IUP
At any time Contractor may request
to the Government to suspend the
mining activities and such request
will not be unreasonably withheld
If such suspension is given, the period
of contract shall be extended equal to
suspension period
Suspension doesn’t affect mutual
rights and obligations of the parties,
except for the obligation suspended
Contractor or the Government shall
not be liable of breach of contract
caused by Force Majeure
Force Majeure includes amongst
other things, wars, insurrections, civil
disturbances, blockades, embargoes,
strikes and other labor conflicts, riots,
epidemics, earthquake, storms,
floods, or other adverse weather
conditions, explosions, fires, lightning,
Acts of God or the public enemy,
breakdown of facilities or machinery,
what ever occurring, any cause over
which the affected party has no
reasonable control
No specific provisions on suspension
and force majeure
Temporary suspension because of (a)
force majeure; (b) disruption; (c)
environment capacity
Force Majeure includes wars, civil
disturbance, insurrections, epidemics,
earthquake, flood, fires, and other
natural disaster out of human control
Disruption includes blockage,
stoppage, industrial dispute,
occurrence of regulations hampering
mining activities
Suspension shall not decrease the
period of IUP
Suspension because of force majeure
releasing IUP holder from any of its
obligation in accordance with the
prevailing laws
Suspension because of disruption
doesn’t not release IUP holder from
financial, environment management
and health and safety requirements
SUSPENSION OF OPERATION
& FORCE MAJEURE
CCOW/COW Mining Authorization (KP) IUP
International Arbitration
or Domestic Arbitration
forums
State Administrative
Court
State Administrative
Court
SETTLEMENT OF DISPUTES
CCOW/COW Mining Authorization (KP) IUP
Contractor to promote
and support
development of regional
infrastructure
No specific stipulation IUP holder to conduct
corporate social
responsibility
CORPORATE SOCIAL RESPONSIBILITY
CCOW/COW Mining Authorization (KP) IUP
Gradually starting from the 5th Operating
Period at least ≥51% of issued shares
shall be offered and purchased by
Indonesian Participant
Indonesian Participant defined as (a)
Government of Indonesia; or (b)
Indonesian nationals; or (c) Indonesian
companies controlled by Indonesians
No divestment stipulation since it is
intended to be owned and controlled by
Indonesian nationals
Foreign Capital holding IUP and IUPK
after 5 years production shall divest their
shares until at least 51% of the shares
then owned by Indonesian participant
Indonesian participant defined as
Indonesian Government, Provincial
Governments, Regencies, State Owned
Enterprises (BUMN), Regional
Government Owned Enterprises (BUMD)
or national business entities
The Government of Indonesia is in the
first priority, followed by Regional
Governments (Provinces or Regencies)
If no one of the above interested, shall
be offered to BUMN and BUMD through
auction
If no BUMN or BUMN interested, shall be
offered to national business entities
through auction
DIVESTMENT
CCOW/COW Mining Authorization (KP) IUP
Parties shall consult
each other in revising
certain provisions of the
contract considering
relevant circumstances
relating to the condition
of the contract
Consultation shall be
conducted in good faith
Any amendment to the
contract shall be based
on mutual agreement of
the parties
Failure to agree doesn’t
constitute breach of
contract
Amendment to the
provisions of KP
conducted in accordance
with the prevailing laws
and regulations
Amendment to IUP
provisions conducted in
accordance with the
prevailing laws and
regulations
AMENDMENT TO MINING RIGHT
PROVISIONS
CCOW/COW Mining Authorization (KP) IUP
CCOW/COW can be
assigned to its affiliates
by notification to the
Government
Assignment to non-
affiliates shall be
approved by the
Government
KP can be transferred
upon approval of the
Minister/Governor/Rege
nt in accordance with
their respective authority
IUP cannot be
assigned/transferred to
any other parties
ASSIGNMENT
CCOW/COW Mining Authorization (KP) IUP
Contractor shall be fully
responsible for financing
the project and maintain
sufficient capital to carry
out obligation under the
contract
KP holder shall be fully
responsible for financing
the project and maintain
sufficient capital to carry
out obligation under the
contract
IUP shall be fully
responsible for financing
the project and maintain
sufficient capital to carry
out obligation under the
contract
FINANCING
CCOW/COW Mining Authorization (KP) IUP
Transfer of shares in
CCOW/COW holders
shall upon approval from
the Government (certain
generation of
CCOW/COW)
Not regulated (in some
KPs it is required to
obtain prior approval
from the authority
issuing the KP
Transfer of ownership
and/or shares can be
conducted only after
having minimum 2
potentials within
Exploration period
TRANSFER OF SHARES