Bre-X and Barrick battle for Busang gold<\/p>\n
JAKARTA (JP): The battle to acquire control of the world's
\nlargest gold deposits in West Kalimantan has accelerated, pitting
\na Canadian company against an American competitor, each backed by
\na politically powerful local partner.<\/p>\n
\"The Indonesian government may appoint Barrick Gold Corp. of
\nthe United States as the final mining contractor, instead of
\nCanada's Bre-X Minerals who initially discovered the huge gold
\ndeposits,\" the Kontan business weekly newspaper said yesterday.<\/p>\n
The weekly, quoting informed sources, said Mrs. Siti
\nHardiyanti Rukmana (Tutut) -- President Soeharto's eldest
\ndaughter and Barrick's local partner -- met Minister of Mines and
\nEnergy I.B. Sudjana for 90 minutes on Wednesday apparently to
\ndiscuss contracts for the Busang gold mines.<\/p>\n
\"A few hours later officials met successively with three
\nCanadian executives and two American businessmen at the
\nheadquarters of the ministry of mines and energy,\" the weekly
\nsaid.<\/p>\n
\"The three Canadians emerged out of the meeting with sour
\nfaces while the Americans came out cheerfully,\" it said,
\nindicating that the American company had a better chance to
\ncontrol the Busang gold mines.<\/p>\n
Late last month, when Bre-X signed a cooperation agreement
\nwith Sigit Hardjojudanto -- Tutut's younger brother -- most
\nanalysts immediately predicted that the Canadian mining company
\nwould soon get the final contracts of work for the two gold mines
\nin Busang.<\/p>\n
Under the agreement, Sigit's company, PT Panutan Duta, would
\nget US$1 million in monthly consulting fees for 40 months and
\nreceive a 10 percent carried interest in the two mines.<\/p>\n
Most analysts reckoned that Bre-X's alliance with Sigit aimed
\nto help Bre-X obtain the final contracts of work for the two gold
\nmines, claimed to contain 44 million ounces of gold.<\/p>\n
Kontan quoted mining officials as predicting that the Barrick-
\nTutut consortium would most likely acquire 75 percent of the gold
\nmining concessions while the Bre-X-Panutan consortium would have
\nto be content with the remaining 25 percent.<\/p>\n
But analysts foresaw international repercussions if the
\ncontracts were awarded to the U.S. company because Bre-X holds a
\nprovisional license for the gold mines.<\/p>\n
\"Awarding the Busang gold concessions to Barrick may set off a
\nchain of international protests and law suits because it was the
\nCanadian firm which initially made the gold discovery under its
\nprovisional license,\" the analysts were quoted as warning.<\/p>\n
The analysts also reckoned that if Bre-X failed to get the
\nfinal contracts, Sigit's Panutan might also lose its lucrative
\ndeal with the Canadian company. (vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bre-x-and-barrick-battle-for-busang-gold-1447893297",
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