Askatindo ends Bre-X partnership<\/p>\n
JAKARTA (JP): PT Askatindo Karya Mineral is withdrawing from
\nits partnership with Bre-X Minerals Ltd of Canada to develop the
\nBusang gold mine in East Kalimantan.<\/p>\n
Company president Harsono said here yesterday that a formal
\nletter announcing the end to the joint venture had been sent to
\nBre-X chairman David Walsh in Canada.<\/p>\n
Askatindo's decision comes in the wake of recent findings by
\nconsultant Strathcona Mineral Services Ltd. that initial
\nassessments of the mine's deposits, touted by Bre-X as the
\nrichest find of the century, were falsified on a scale without
\nprecedent in mining history.<\/p>\n
Strathcona said it found evidence of tampering with Bre-X's
\ncore samples from the Busang site.<\/p>\n
Bre-X had claimed Busang contained about 71 million ounces of
\ngold.<\/p>\n
Harsono said the government's decision to freeze all Bre-X
\nactivities in Indonesia had also halted exploration in
\nAskatindo's mining concessions at Busang.<\/p>\n
\"We have suffered losses as a result,\" he said.<\/p>\n
Askatindo, owned by H. Sjakareni and timber tycoon Muhammad
\n(Bob) Hasan, requested complete data on Bre-X's activities at its
\nmining concession in Busang.<\/p>\n
Based on the joint venture agreement signed by the two firms
\nin September 1994, Bre-X has to foot all the costs of
\nexploration.<\/p>\n
The Indonesian firm gave Bre-X a week to respond to its
\nletter.<\/p>\n
Askatindo would consider pursuing legal action against Bre-X
\nif outstanding issues were not solved to its satisfaction,
\nHarsono said.<\/p>\n
Ahmad Yani, a director of Askatindo, said he hoped the
\ngovernment would allow his company to continue exploration in
\nBusang.<\/p>\n
\"We're very disappointed with the Bre-X action,\" he said. \"We
\nhope the government's decision to freeze all activities of the
\nCanadian firm will be only temporary.\" (bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/askatindo-ends-bre-x-partnership-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}