One of the risks faced by the Company is the risks related to overlapping issues, both with legal entities, individuals and / or local communities. To handle this problem formally, the Company makes legal efforts to maintain its territory or concessions through the District Court and / or State Administrative Court.
In addition, the provisions in the Contract of Work, exploration permits and forestry licenses require the Company to face various risks such as:
- If the Company fails to fulfill its obligations under the Contract of Work, exploration permits and
forestry permit, the Government can terminate the Contract of Work and the exploration permit. Right
to explore and mine in the concession area depends on the validity of the Contract period
The work, exploration permit and forestry permit.
- All Contracts of Work, exploration permits and forestry licenses of the Company have dates
expires, but the contract / permit can be terminated by the government before the date
expires if the Company cannot fulfill its contractual obligations. This obligation
includes payment of royalties and taxes to the Government and compliance with the provisions
in mining, the environment, occupational safety and health.
- If the Contract of Work and exploration permit are terminated or rights are restricted, the Company will not be able or will have difficulty in continuing exploration, development or mining activities within the concession area.
To manage these risks, the Company strives to ensure that all operational activities are equipped with permits and legality aspects in accordance with applicable laws and regulations.