Under the old Mining Law, mineral exploration and mining activity in Indonesia was conducted under either a Mining Authorization (“KP”) and/or a Contract of Work (CoW), which was issued by the Central Government. Under the old Mining Law, an Exploration KP was granted for 3 (three) years, followed by an Exploitation KP for 30 (thirty) years, extendable for 10 (ten) years twice. An Exploitation KP was a type of mining licence for exploitation activities in a mining area. It was valid for a limited period of up to 30 years and can be extended twice, each time for a 10-year period. The maximum area coverage for an Exploitation KP was 1,000 hectares. An Exploitation KP could include KPs for processing and refining, as well as transportation and marketing. If an Exploitation KP did not include the necessary KPs for those activities, the holder would be required to apply for the other types of KPs.