Busang gold dispute may be settled in courts<\/p>\n
SYDNEY (Reuter): Indonesian parties in the Busang gold
\ndiscovery dispute hope to resolve matters through administrative
\naction in Indonesia but are prepared to take legal action in
\nCanada if necessary, Warren Beckwith, managing director of
\nAustralia's Golden Valley Mines NL, said yesterday.<\/p>\n
The Indonesian interests of businessman Jusuf Merukh, which
\nhave signed a technical assistance agreement with Golden Valley
\nfor the big Busang gold find in Kalimantan, would pursue legal
\naction against Canada's Bre-X Minerals Ltd if needed, he said on
\nhis return to Australia from talks in Indonesia.<\/p>\n
"The Indonesian parties are hoping that it will be resolved by
\ndiscussion and by Indonesian government administrative action,"
\nBeckwith said.<\/p>\n
"But (they) feel that there's been very little willingness on
\nthe part of Bre-X so far to address the concerns, and legal
\naction may be the result," he said.<\/p>\n
The root of the complicated dispute is options on ownership of
\nequity stakes in the Busang gold discovery, which according to
\nmajority owner Bre-X contains a gold resource of 622 million
\ntons of ore at an average grade of 2.34 grams per ton for 46.92
\nmillion ounces of contained gold.<\/p>\n
Merukh's PT Krueng Gasui owns an undisputed 10 percent
\ninterest in the Muara Atan Contract of Work, which contains part
\nof the Busang deposit. Another of his interests, PT Sungai Atan
\nPerdana, owns another 10 percent, Merukh says.<\/p>\n
Merukh also claims to hold an option for a further total of 20
\npercent in Busang.<\/p>\n
Golden Valley's technical assistance and financial agreement
\nwith Merukh's interests entitled the Australian company to fees
\nand royalties, based on future cash flows from Busang, Beckwith
\nsaid. "It's not an equity stake," he in telephone interview.<\/p>\n
With the payments to be based on cash-flow from Busang, it was
\ndifficult to say what the payments would be until the cash flow
\nemerged, he said.<\/p>\n
Beckwith would not disclose the formula on which the cash flow
\nwould be based. "There's many a slip betwixt cup and lip in the
\nmining game," he said.<\/p>\n
"It would be a bit rash of me to speculate on the numbers
\nuntil the operators ... if it remains Bre-X ... are further
\nadvanced in their pit design and mineable reserves calculations,"
\nhe said. But he said cash-flow to Golden Valley from Busang would
\nbe significant.<\/p>\n
Bre-X this week described statements that Golden Valley was
\nentitled to part of the big Busang gold discovery as "false and
\nmisleading".<\/p>\n
Beckwith said yesterday Golden Valley had teamed up with Jusuf
\nMerukh for the whole of the Indonesian's Busang interests.<\/p>\n
"Essentially our position is that if the call option is
\nexercised, that would give Jusuf Merukh -- and therefore would
\nflow through to the benefit of our interests -- an extra 20
\npercent," Beckwith said.<\/p>\n
There was no question about Golden Valley's agreement with PT
\nKrueng Gasui, with its 10 percent of Busang.<\/p>\n
There was probably no question about Golden Valley's agreement
\nin principal with PT Sungai, with its 10 percent of Busang,
\nBeckwith said.<\/p>\n
Beckwith said there was no question of Merukh's rights through
\nhis options over the remaining 20 percent of Busang.<\/p>\n
"But until such time as the shares are in his name, you've got
\nto ... exercise a bit of caution," he said.<\/p>\n
Golden Valley was anxious to clear the matter up as soon as
\npossible, but most pressure was on Bre-X and the Indonesian
\ngovernment, he said.<\/p>\n
"We're assisting the Indonesian government to try to clean it
\nup as soon as possible," he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/busang-gold-dispute-may-be-settled-in-courts-1447893297",
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