Govt awards 24 contracts for mining projects<\/p>\n
JAKARTA (JP): The government yesterday awarded five working
\ncontracts for general mining to foreign joint ventures and 19
\ncooperation agreements on coal mining for domestic companies.<\/p>\n
The working contracts were signed here by Minister of Mines
\nand Energy I.B. Sudjana and executives of the joint ventures. The
\nagreements on coal mining were signed by the president of the
\nstate-owned coal mining company PT Tambang Batubara Bukit Asam,
\nAmbyo Mangunwijaya, and executives of the domestic companies in a
\nceremony.<\/p>\n
"Under the cooperation agreements, eight companies are allowed
\nto explore and mine coal in East Kalimantan, one in Central
\nKalimantan, five in South Kalimantan, four in South Sumatra and
\nanother one in Riau," Sudjana said, adding that those contractors
\nwill operate in a total area of around 1.6 million hectares.<\/p>\n
He said the cooperation agreements were approved by the office
\nof the State Ministry of Investment, the Ministry of Finance, and
\nthe House of Representatives (DPR).<\/p>\n
"With the agreements, the government will receive a royalty of
\n13.5 percent of the coal to be produced by the contractors," he
\nsaid.<\/p>\n
The royalty payment will be managed by Tambang Batubara.<\/p>\n
Closed<\/p>\n
Since 1991, the government has closed the coal mining industry
\nto foreign investors to protect domestic companies from fierce
\ncompetition.<\/p>\n
According to Sudjana, the government has no intention of
\nchanging the protection policy. "It is too early to change that,"
\nhe said.<\/p>\n
Prior to the 19 agreements, the government had awarded 11 coal
\nmining contracts to companies which had been committed to
\ninvesting US$1.30 billion, including $1.25 billion by the foreign
\npartners in the companies and the remaining $4 million by the
\ndomestic partners.<\/p>\n
The country's total coal production last year reached 19.8
\nmillion tons, as compared to 150,000 tons in 1988, while its coal
\nexports increased to 17.1 million tons worth $534 million from
\n688,650 tons valued at $23.7 million.<\/p>\n
Director General of Mines Kuntoro Mangkusubroto told The
\nJakarta Post after the signing ceremony that there are now more
\nthan 20 domestic companies waiting for approval from the Ministry
\nof Mines and Energy for coal exploration in the country.<\/p>\n
"The documents for their contracts are now under examination.
\nThey are expected to explore for coal in a combined area of two
\nmillion hectares in Aceh, Jambi, Riau, South Sulawesi and West
\nand South Kalimantan," Kuntoro said.<\/p>\n
General mining<\/p>\n
Sudjana said that the five joint ventures that were awarded
\nworking contracts yesterday will operate in Irian Jaya, North
\nSulawesi and South and North Sumatra.<\/p>\n
PT Ingold Antares, a joint venture that is 80 percent owned by
\nIngold Ltd. of Canada and 20 percent by PT Kalirindo Gunung
\nMinerals, was awarded a contract for the exploration and
\nproduction of copper and gold in a 1.08 million-hectare plot of
\nland in Irian Jaya.<\/p>\n
Eastern Irja Mining Corp. will conduct explorations for copper
\nand gold in Irian Jaya in an area of 1.23 million hectares. The
\ncompany is 80 percent owned by the U.S. Eastern Mining Co., 10
\npercent by PT Setdco Ganesha and another 10 percent by PT Bakrie
\nIndocopper Investama Corp.<\/p>\n
PT Newcrest Nusa Sulawesi will survey for copper and gold in a
\n1.12-million hectare plot of land in North Sulawesi. The company
\nis a joint venture 90 percent owned by Newcrest Mining Ltd. of
\nAustralia and 10 percent by PT Austindo Nusantara Jaya.<\/p>\n
Paragon Perdana Mining, a joint venture 70 percent owned by
\nHong Kong's Paragon Resources Ltd. and 30 percent by PT Keikan
\nPerdana Mining, will survey for zeolite in an area of 6,607
\nhectares in Lampung, South Sumatra.<\/p>\n
Miwah Tambang Emas -- a joint venture 90 percent owned by
\nAustralia's Highlands Gold Pty. Ltd. and 10 percent by PT
\nMarhuama Subur Gunung Minerals -- will survey for gold in a
\n211,790-hectare land in Aceh. (fhp)<\/p>\n
Photo -- Page 8<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/govt-awards-24-contracts-for-mining-projects-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }