Bre-X and Barrick face new hurdle<\/p>\n
JAKARTA (JP): Canadian mining companies Bre-X Minerals Ltd.
\nand Barrick Gold Corp. face a new stumbling block before they can
\ndevelop the disputed Busang gold mine.<\/p>\n
Sources said yesterday Bre-X did not agree that the
\ngovernment's 10 percent stake in the project could be taken
\nequally from the two firms' shares, and that the government was
\nplanning to revoke the Busang II concession.<\/p>\n
\"Barrick wants to see that the government's request for a 10
\npercent stake in Busang would be taken equally from the two
\ncompanies' shares. But seemingly Bre-X has objected to such a
\nscheme,\" an informed source told The Jakarta Post yesterday.<\/p>\n
She said Barrick was waiting for \"new solutions\" to several
\ndisagreements between the two Canadian companies.<\/p>\n
Another informed mining industry source said the government
\nhad planned to revoke the Busang II mining concession, which was
\nbeing held by PT Asketindo, Bre-X's local partner.<\/p>\n
Busang II, which Bre-X claims holds one of the world's largest
\ndeposits with an estimated 57.33 million ounces of gold, was
\ndiscovered by PT Asketindo and Bre-X.<\/p>\n
The source said that after the discovery the government
\ngranted Bre-X and Asketindo a temporary mining contract, which
\nwould qualify them for a final contract of work to develop the
\ngold mine.<\/p>\n
He said the revocation of the Busang II concession would mean
\nthat Asketindo and Bre-X -- which in October signed up Sigit
\nHardjojudanto, Rukmana's eldest brother -- would no longer have
\nthe right to develop the gold mine and pave the way for other
\nfirms to control it.<\/p>\n
Umar Said, the Ministry of Mines and Energy's secretary-
\ngeneral, said earlier that the two Canadian companies had finally
\nagreed that Barrick would have a 75 percent stake and Bre-X a 25
\npercent in the gold mine.<\/p>\n
He said the two mining firms had also agreed to accommodate a
\n10 percent stake for the government but were undecided on how to
\narrange it.<\/p>\n
Another Canadian mining company, Placer Dome Inc., said it was
\nstill keen to acquire a substantial interest in the Busang mine.
\n(bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bre-x-and-barrick-face-new-hurdle-1447893297",
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