APAC said Article 169 of the Indonesian Bill on Mineral and Coal Mining stipulated all existing Coal Contracts of Work (CCOWs) will remain valid until the respective expiry dates.

The explorer said the CCOW for its key Batubara concession would therefore remain valid until 30 years from the start of mining operations.

However, APAC added the same article also said the provisions of the CCOWs must be adjusted in line with the provisions of the new bill within 12 months of its enactment.

“There is no stipulation in the new mining law on the details of the adjustment expected,” APAC said.

The company said it would continue to monitor legal and other developments in Indonesia and would update the market on any resulting effect on its business.

APAC listed on the Australian Securities Exchange in July last year and holds a JORC-compliant resource of 5.1 million tonnes of coal in a 68,000-hectare concession in East Kalimantan.

Of the resource, 1.4Mt is inferred and 3.7Mt is indicated.

The new mining law changes stem from Indonesian concerns of less mining-related revenue compared to other resource-rich nations, while media criticism has often centred on concerns of providing long-term security to foreign investment.

Issues for Australian companies from the laws include new requirements for only Indonesian contracting companies to undertake mining services.

Although there are provisions for foreign companies to take on the work if suitable Indonesian services are unavailable, Australian construction giant Leighton Holdings has $A2.86 billion worth of Indonesian contracts potentially under jeopardy.

Miners BHP Billiton and OZ Minerals also have contracts of work in the nation.