Govt signs three contracts, renews two others in mining<\/p>\n
JAKARTA (JP): Minister of Energy and Mineral Resources Purnomo
\nYusgiantoro signed three contracts on Wednesday for the
\ndevelopment of the country's coal resources, and renewed two
\ncontracts for the development of Indonesia's tin and granite
\nresources.<\/p>\n
The minister awarded contracts to PT Ratah Coal, PT Lahai Coal
\nand PT Juloi Coal, and renewed the contracts of tin mining firm
\nPT Koba Tin and granite mining company PT Karimun Granite.<\/p>\n
\"The signing of these contracts confirms Indonesia is still an
\nattractive country for investment, particularly in the coal
\nsector, even though we are currently going through the process of
\npolitical reform and economic restructuring,\" Purnomo said in a
\nspeech.<\/p>\n
Ratah, Lahai and Juloi are 99 percent owned by Australian
\ncompany BHP Minerals Holdings Pty Ltd., with the remaining 1
\npercent owned by its sister company BHP Minerals Asia Pacific Pty
\nLtd.<\/p>\n
According to Simon Sembiring, the ministry's chief negotiator
\nduring the contract talks, Ratah was awarded a contract area of
\napproximately 100,000 hectares in North Barito regency, Central
\nKalimantan, and in West Kutai regency, East Kalimantan.<\/p>\n
Simon said Lahai was given a contract area of some 98,000
\nhectares, also located in North Barito and West Kutai regencies.
\nAnd Juloi received a contract area covering 192,000 hectares in
\nNorth Barito regency.<\/p>\n
Simon explained that under their coal contracts, the three
\nfirms had to submit 13.5 percent of their coal production in cash
\nto the government, and also pay taxes to the government in
\naccordance with existing tax laws.<\/p>\n
He added that the three contractors were fully responsible for
\nthe management of their operation areas.<\/p>\n
Simon also said the mining companies must prioritize the
\nrecruitment of locals and provide training programs, and also
\nprotect the environment.<\/p>\n
Kobatin is 75 percent controlled by Australian firm Kajuara
\nMining Co. Pty Ltd., with the remaining 25 percent owned by
\npublicly listed state-owned tin mining firm PT Tambang Timah.<\/p>\n
Karimun Granite is owned by a consortium comprising Hong Kong-
\nbased firms Seville Row Developments Ltd. (2.5 percent) and
\nEastern Fortune Ltd. (2.5 percent), and local firms PT Pendawa
\nSempurna (77.75 percent) and PT Tatawahana Duta Persada (17.25
\npercent).<\/p>\n
Simon said Kobatin was first awarded a contract in 1971 with a
\nfocus on the mining of tin ore on Bangka island in South Sumatra.<\/p>\n
He said the company now had a total production of around
\n10,000 tons of tin per year, while its total investment as of
\n1999 reached US$92 million.<\/p>\n
Kobatin's previous contract, which was to expire on March 30,
\n2003, was extended for 10 years.<\/p>\n
Simon said Karimun was first awarded a contract in 1971 with a
\nfocus on granite mining on Karimun island in Riau province.<\/p>\n
He said the company began production in 1974 with current
\nannual output reaching four tons of granite. The company has
\ninvested a total of $57.5 million in its operation.<\/p>\n
Karimun first extended its contract in 1993 for 10 years, and
\nhas now received another 10-year extension.<\/p>\n
The extended contracts were based on the seventh generation
\ncontract of work, under which the companies must pay taxes
\naccording to the current tax laws. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-signs-three-contracts-renews-two-others-in-mining-1447893297",
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"sponsor": "Okusi Associates",
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