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Fourth Section

IUP Special Production Operations

Article 30

IUP Special Production Operations in the field of mineral and coal mining consists of: a. IUP Special Production Operations for transporting and

sales;

b. IUP Special Production Operations for processing and refining;

c. Temporary permit to carry out transport and sales; and

d. IUP Production Operations for sales.

Section 31

(1) In terms of the IUP holders of Production Operations not performing transport and sales activities, transport and sales activities can be performed by the business entity, the cooperative, or Individuals who have an IUP Special Production Operations for transport and sales as referred to in Section 30 of the letter a.

(2) In terms of IUP holders of Production Operations not performing processing and refining activities, processing and refining activities may be performed by a business entity, co-operative, or individual who has an IUP Special Production Operations for the processing and purification as referred to in Article 30 of the letter b.

(3) IUP Exploration Holder may sell digger minerals and coal at the time of exploration activities and feasibility studies after obtaining a temporary license to perform transport and sale as referred to in Article 30 A c.

(4) A non-moving business entity on a mining venture that intends to sell the mineral and/or digger coal is required to first have an IUP of Production Operations for the sale as referred to in Article 30 of the letter d.

Article 32

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(1) The Governor publishes IUP Special Production Operations as referred to in Section 30 under the request submitted by the business entity, the cooperative, or the individual, and has met the requirements.

(2) The requirements as set forth in paragraph (1) and the order of the IUP issuer of Special Production Operations are executed under the provisions of the laws.

Fifth Section

Penciation of Mining Permit Region

Article 33

(1) IUP holders can shrink in part or return the entire WIUP.

(2) The terms and requirements of the impersonation or return of WIUP as referred to in paragraph (1) are executed under the provisions of the laws.

Sixth Section

Temporary Termination of iUP activities

section 34

(1) Temporary Termination of mineral and coal mining business activities can be provided to the IUP holders in terms of: a. Kahar state;

b. the circumstances that were in the way of preventing some or all of the mining business activities;

c. The environmental conditions of the region environment cannot bear the burden of mineral resources and/or resource operations. coal done on its territory.

(2) Requests for temporary cessation of mining activities as referred to in paragraph (1) letter a and letter b delivered to Governor c.q. Kadis in the slowest term of 14 (four The day of the work, since the occurrence of the kahar, and/or circumstance. blocking.

(3) In terms of circumstances referred to in paragraph (1) the letter c, temporary termination may be performed by the Mine Inspector.

(4) The Governor issued a decision most of 30 (thirty) days from the request of a temporary outage as referred to in paragraph (2) received, with the provision given the most lasting 1 (one) year and may be extended at most (one) times for 1 (one) year.

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(5) The temporary suspension of mining business activities as referred to in paragraph (1) does not reduce the term of IUP.

Seventh Section

Finally IUP

Article 35

(1) IUP ends due to: a. returned;

b. revoked; or

c. expired.

(2) The IUP Holder may resubmit IUP with a written statement to the Governor accompanied by a clear reason.

(3) The IUP traveler as referred to in paragraph (2) Declared legitimate after approval of the Governor.

(4) IUP revoked due to: a. iUP holders do not meet the specified obligations

in IUP and the rules of the invite-invite rules;

b. The IUP holders committed a criminal basis under the provisions of the laws of the laws;

c. the IUP holder was declared bankruptcy.

Article 36

In terms of the term specified in IUP has expired and have not submitted a request the upgrade or extension of the activity stage or submission of the application but does not meet the requirements, the IUP is declared terminated.

Article 37

IUP which ends for the reason as referred to in Article 35 of the paragraph (1) is mandatory satisfy and resolve all obligations under the terms of the laws.

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BAB VIII

RIGHT AND LIABILITY

Part Kesatu

Right

Article 38

(1) IUP holders are entitled to some or all stages of mining activities, both exploration and activities activities production operations in accordance with the IUP are owned.

(2) The IUP holders can utilize the infrastructure and the general means for mining purposes, as per the provisions of the laws.

(3) The IUP holders are entitled to have minerals, including their associated minerals, or coal that have been produced after paying for exploration or production dues, as per the laws.

Article 39

(1) IUP holders must not move IUP holdings to other parties.

(2) The transfer of ownership and/or shares in the Indonesian stock exchange can only be done after performing stage exploration activities Certain, as the laws of the law.

(3) Concourse of ownership and/or shares as referred to in paragraph (2) may only be performed on the terms of: a. must be notified to the Governor;

b. not in conflict with the invite-invite rule.

Article 40

IUP holders are guaranteed their right to conduct mining efforts in accordance with the rules of the invite-invitation.

Second Section

Obligate

Article 41

IUP holders are mandatory: a. implement the safety and work health provisions

mining;

b. carrying out the safety of mining operations;

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c. carry out the management and monitoring of the mining environment, including reclamation and pascatverge activities;

d. administer finance in accordance with the Indonesian accounting system;

e. increasing the value of added minerals and/or coal through processinn can be given the longest of 20 (twenty) years and can be extended 2 (two) times each 10 (ten) years.

(3) Long-Term IUP Operations Mineral production is not a metal that can be given at least 10 (ten) years and can be extended by 2 (two) times each 5 (five) years.

(4) Special IUP A mineral production operation instead of a certain type of metal can be given the most longer 20 (two) (2) the year and may be extended by two (two) times each 10 (ten) years.

(5) The term of the IUP Production Operations may be given at most five (five) years ang and refining activities within the country.

f. carrying out the development and empowerment of the community around the mine;

g. comply with the environment of environmental support tolerance;

h. ensuring the standard and standard application of the environment in accordance with the area characteristics:

i. maintaining the preservation of the function and the support of water resources in accordance with the provisions of the laws of the laws;

j. Maintain the use of local labor, goods, and domestic services in accordance with the rules of the invitation;

k. Deliver regular written reports of the work plan and cost budget, as well as the implementation of mineral and coal mining business activities to the Governor;

l. pay for state income and state revenue according to the laws of the laws;

m. Obey the local community culture based on local wisdom.

BAB IX

MINING SERVICES

Article 42

(1) The IUP holders in conducting mining business activities can use mining services.

(2) The company's company is based on a list of: a. mining service efforts; and

b. Non-core mining services.

(3) IUP holders as referred to in paragraph (1) are required to use a local mining services company and/or a national mining services company, cooperative entity, cooperative, or individual.

(4) In the case of no mining services company as referred to in paragraph (3), IUP holders can use other mining services companies, as per the laws.

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Section 43

The type of mining service undertaking as referred to in Article 42 of paragraph (2) of the letter a includes: a. consulting, planning, execution and testing

equipment in the field:

1. a general inquiry;

2. exploration;

3. feasibility study;

4. mining construction;

5. transport;

6. mining environment;

7. reclaimed and pascatverge; and/or

8. safety and work health.

b. consulting, planning and testing of equipment in the field: 1. mining; or

2. processing and refining.

Article 44

(1) The local mining services venture is able to do its activities after getting IUJP from the Governor.

(2) The non-core mining service is able to perform its activities after the get SKT from the Governor.

(3) IUJP or SKT is given for a most prolonged period of 3 (three) years and may be extended, as per the provisions of the laws.

(4) Terms on the terms and requirements of the application get IUJP or SKT set further with Governor regulations.

BAB X

RECLAMATION AND PASCATVERGE

Part Kesatu

Reclamation Plan and Pascatverge

Article 45

(1) Licensee's IUP Exploration before conducting mandatory exploratory activities compiling a reclamation plan based on a living environment document that has been approved by the authorized instance, in accordance with the provisions of the IBM International Program. Laws in the field of protection and the management of the environment.

(2) The reclamation plan as referred to in paragraph (1) is contained in the work plan and the budget of exploration costs.

27

(3) IUP holders of Exploration who have completed the eligibility study activities are required to apply for the reclamation plan approval and pascatverge plans to the Governor c.q. Kadis.

(4) Reclamation Plans and The following thresholds referred to in paragraph (3) are submitted concurrently with the submission of the IUP Production Operation.

(5) The plan reclamation and the pascatverge plan as referred to in paragraph (3) are compiled based on the environmental document which have been approved by the authorized instance, in accordance with the provisions of the regulations Invite-an invitation in the field of protection and environmental management.

Article 46

(1) The governor gives consent to the reclamation plan that has met the requirements, in the most prolonged period of 30 (thirty) days The calendar since IUP Production Operations is published.

(2) The Governor gives consent to the post-threshold plan which has met the requirements, within the longest term of 60 (sixty) calendar days since the IUP of Production Operations was published.

(3) Requirements as referred to in paragraph (1) and (2) in accordance with the terms Laws.

Second section

Implementation of Reclamation and Pascatverge

Article 47

(1) Holder IUP Exploration is required to carry out reclaimed land on exploratory activities.

(2) Licensee's use of Production Operations is mandatory Carrying out reclamation and pascatverge against land is disrupted in mining activities.

(3) The implementation of reclamation and pascatverge is conducted under the provisions of the laws.

Third Section

Reclamation Guarantee and Pascatverge

Article 48

(1) Holder IUP Exploration is required to provide reclamation guarantees.

(2) Licensee's use of the Production Operations is required to provide reclamation and warranty. pascatverge.

Article 49

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(1) The placement of the reclaimed guarantee as referred to in Article 48 of the paragraph (1) does not remove the obligations of the holder of the Exploration IUP to carry out the reclamation.

(2) The placement of the reclaimed guarantee as contemplated in Section 48 of the paragraph (2) does not remove the obligation of IUP holders of Production Operations to perform reclamation.

(3) The placement of post-mine assurance as referred to in Article 48 paragraph (2) does not eliminate the obligations of the Operation IUP holder Production to perform pascaters.

Section 50

Terms of Use Reclaimed guarantee and post-threshold assurance is further governed by the Governor's Rule.

BAB XI

SOCIETY DEVELOPMENT AND EMPOWERMENT

Article 51

(1) IUP holders are required to compose program development and empowerment The community's around WIUP.

(2) The Program as referred to in paragraph (1) must be consulted with the Local Government and local communities.

(3) The development and empowerment of the community as referred to in paragraph (1) is prioritised for the community in WIUP is directly affected by mining activities or that is near mining operations by not looking at the administrative boundaries of the district/district.

Article 52

(1) The community development and empowerment program as referred to in Article 51 of the paragraph (1) is financed from the allocation of the cost of the development program and the empowerment of the people on the budget and the cost of the holder of the IUP annually.

(2) The program cost of the program and community development as referred to in paragraph (1) is managed by the IUP holder.

(3) IUP holders each year are required to deliver plans and costs of implementation of community development and empowerment programs as part of the work plan

29

and the annual fee budget to the Governor c.q. Kadis to get approval.

Article 53

IUP holders are required to submit a report of the realization of the program and the empowerment of the community every 6 (six) months to Governor c.q. Kadis.

BAB XII

INCOME AREA

Article 54

(1) IUP holders are required to pay regional income and state acceptance not tax, as per the laws.

(2) The country ' s acceptance of not tax as referred to in paragraph (1) consists of: a. Fixed dues;

b. exploration dues;

c. iuran productiin effect until the termination of the permit.

BAB XVIII

provisions Closing

Section 65

Things that have not been set up in this Regional Regulation as long as the implementation of the implementation is further set up by the Governor's Rules.

34

Section 66

This section of the Regulation is effective at the date of the promulcity.

For everyone to know it, ordered the invitation of the Regulation of the Regions with its placement in the Leaf of the Province of Sumatra North.

Set in Medan on the date

Plt. GOVERNOR OF NORTH SUMATRA,

GATOT PUJO NUGROHO

promulgates in Medan on the date

SECRETARY OF THE PROVINCE OF NORTH SUMATRA PROVINCE,

H. NURDIN LUBIS

SHEET AREA OF NORTH SUMATRA PROVINCE OF 2012 NUMBER

EXPLANATION

UP

REGULATION OF NORTH SUMATRA PROVINCE

NUMBER YEAR 2012

ABOUT

GENERAL MINING MANAGEMENT

I. Article 33 of the paragraph (3) of the Basic Law of 1945 asserts

that the earth, water and natural wealth contained in it are controlled by the state and used for the great prosperity of the people. The natural resources of minerals and coal are the wealth of the unrenewable nature as the gift of the Almighty God of the Almighty God. The implementation of the state's control of minerals and coal is carried out by the Government, the Provincial Government and the Provincial Government/City as well as its authority.

Potency of mineral and coal resources has an important role and It needs to be utilized optimally in order to support regional and national development. Therefore, the management needs to be done as optimal as possible, efficient, transparent, sustainable and insightful, as well as justice to benefit the greater good for the prosperity of the people.

The rules of this region Based on Law Number 4 of the Year 2009 on Mineral Mining and Coal Following Regulation, the Government Regulation No. 22 Year 2010, Government Regulation Number 23 Year 2010, Government Regulation Number 55 of the Year 2010, and Government Regulation No. 78 of 2010, as well as Government Regulation Number 38 In 2007 on the Sections of Government Affairs between Government, Provincial Government and District/City Local Government.

The regulation of mineral and coal mining management in these Regional Regulations includes inventory of mining potential, mining business area, mining business permit region, mining business permit, rights and liabilities, services efforts mining, reclamation and pascatverge, community development and empowerment, area income, coaching and supervision.

Guna provides a legal basis for the holding of mineral and coal mining and mineral mining, then it needs to be established with the Regional Rule.

2

II. SECTION BY SECTION

Article 1

Is quite clear.

Article 2

Quite clearly.

Article 3

Quite clearly.

Article 4

Quite clearly.

Article 5

The letter a

Is fairly clear.

Letter b

Clearly.

The c

is quite clear.

The d-letter

is quite clear.

The letter e

Is quite clear.

The letter f

referred to the mineral and coal balance sheet is the balance sheet depicting the the number of resources, reserves, and mineral and coal production regionally.

Article 6

Quite clear.

Article 7

Verse (1)

Quite clear.

Verse (2)

Data and information are processed and poured into a potential map of minerals and/or coal using the national standard of geological data processing.

3

Verse (3)

The potential map of the mineral and/or coal is evaluated by Me nteri, used as the basis for the drafting of the WP designation plan.

Article 8

Quite clearly.

Article 9

Quite clearly.

Article 10

Verse (1)

Is quite clear.

Verse (2)

The devolve authority is the authority to establish WUP minerals instead of metals and rocks within 1 (one) district/city or cross-district/city.

Verse (3)

Quite clearly.

Article 11

Quite clearly.

Article 12

Verse (1)

Verse enough.

Verse (2)

The recommendation in this provision is a recommendation in the form of consideration which contains information about land utilization in WIUP and the cultural characteristics of the people based on local wisdom in the wake of the WIUP auction.

Verse (3)

Which is meant to offer WIUP is announcing WIUP that will be auctioned off publicly: a. at least in one local print media and/or one

national print media; b. in the office of the Directorate General of Mineral and Coal

The Ministry of Energy and Mineral Resources; and c. in the Provincial Office of Mining and Energy Services

North Sumatra, and in the Technical Instancy office of the Regency/City which Organized a government affairs in the fields of minerals and coal.

4

Verse (4)

Pretty clear.

Article 13

Pretty clear.

Article 14

Quite clear.

Article 15

Quite clear.

Article 16

Quite clear.

Article 17

Quite clear.

Article 18

Quite clearly.

Article 19

Verse (1)

Quite clear.

Verse (2)

It is fairly clear.

Verse (3)

Quite clear

Verse (4)

The recommendation in this provision is recommended In the form of consideration that contains information about land utilization in WIUP and cultural characteristics The community is based on local wisdom in the order of WIUP.

Article 20

Quite clearly.

Article 21

Verse (1)

It is pretty clear.

Verse (2)

The letter a

Mining of the metal minerals in this provision includes its following mineral.

5

The letter b

Is quite clear.

The c

is quite clear.

The d

letter is fairly clear.

Verse (3)

Is pretty clear.

Article 22

Verse (1)

Which is an exploratory activity in This provision includes a general inquiry, exploratory, and feasibility study.

Verse (2)

Quite clear.

Verse (3)

Quite clear.

Article 23

Quite clearly.

Article 24

Quite clear.

Article 25

Verse (1)

Pretty clear.

Verse (2)

Quite clear.

Verse (3)

Which is referred to with minerals not a specific type of metal is among other limestone for the industrial cement, intan and batumulia.

Article 26

Quite clear.

Article 27

Quite clear.

Article 28

Quite clear.

6

Article 29

Pretty clear.

Section 30

Quite clearly.

Article 31

Quite clear.

Article 32

Quite clear.

Article 33

Quite clear.

Article 34

Verse (1)

The letter a

referred to the kahar state among other wars, civil unrest, uprisings, epidemics, earthquakes, floods, fires, and other natural disasters outside of human abilities.

The letter b

referred to with the circumstances blocking among other blockades, strikes, labour disp