Legality Risk – Licensing and Approval

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.