The government announced Friday it had terminated 111 mining contracts since 1999 due to companies' failure to meet contract requirements.<\/p>\n
In a press statement, the Energy and Mineral Resources Ministry said 64 of the terminated contracts were for mining firms and the remaining 47 were coal firms.<\/p>\n
\"Basically, the government honors the sanctity of the contract, but they can be terminated should the firms fail to carry out their obligations as agreed to in the contract,\"<\/p>\n
\"Or if there are corporate criminal acts involved. The contract termination, however, can also based on voluntary cessation requests from the mining firms,\" said the ministry.<\/p>\n
Among the terminated contracts were those for major firms such as Australia-based BHP Billiton and Herald Resources, and Korea-based Kodeco.<\/p>\n
The BHP's terminated contracts included mining projects in North Sumatra and East Nusa Tenggara, the ministry said.<\/p>\n
The contract for a concession in North Sumatra was terminated in 2001 at the firm's request.<\/p>\n
However, the ministry refused to give a reasons for the termination of the contract for a project in East Nusa Tenggara.<\/p>\n
As for Herald's contract, the ministry said the firm had asked for a termination.<\/p>\n
Energy and Mineral Resources Minister Purnomo Yusgiantoro told reporters that one of Kodeco's contracts was terminated at the company's request, and a second because the company failed to meet contract requirements.<\/p>\n
The government revoked Kodeco's contracts for two coal mines in Papua.<\/p>\n
\"One contract was terminated at their request, and another one was because their failure to meet contract requirements,\" said Purnomo, without further explanation. --JP\/Ika Krimantari<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/govt-terminates-contracts-for-111-mining-operators-1205576068", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }