Govt wants bigger local Busang stake<\/p>\n
JAKARTA (JP): The government is giving local companies the
\nwidest possible opportunity to own big stakes in the huge Busang
\ngold mine in East Kalimantan, Minister of Mines and Energy I.B.
\nSudjana said yesterday.<\/p>\n
\"Therefore, the government encourages businesspeople such as
\nMohammad (Bob) Hasan to join the battle for ownership of the
\nBusang gold project,\" Sudjana said in North Sumatra.<\/p>\n
Sudjana was quoted by Antara as saying in Kisaran that the
\ngovernment wanted to see a bigger national shareholding in the
\ngold project.<\/p>\n
\"I have sent letters to the two Canadian companies asking them
\nto renegotiate the shareholding structure with their Indonesian
\npartners,\" he added.<\/p>\n
Sudjana was replying to reporters' questions about Bob's entry
\ninto the battle for the gold mine through PT Nusantara Ampera
\nBhakti, a company controlled by three foundations chaired by
\nPresident Soeharto.<\/p>\n
He said the government had asked the two Canadian firms --
\nBarrick Gold Corp. and Bre-X Minerals Ltd -- to accommodate the
\naspirations of their local partners as much as possible.<\/p>\n
The Busang gold project raised controversy last October after
\nBre-X teamed up with President Soeharto's eldest son Sigit
\nHarjojudanto and Barrick teamed up with Sigit's sister Mrs. Siti
\nHardianti Rukmana in a bid to speed up approvals to develop the
\nmine.<\/p>\n
\"I don't want Indonesia losing out (in the dispute),\" Sudjana
\nadded.<\/p>\n
The government confirmed last month that Bre-X and Barrick had
\nagreed on a 25 percent-75 percent split of the Busang gold
\nventure. They also agreed to provide a 10 percent stake to the
\nIndonesian government.<\/p>\n
However, Bre-X has been disputing with its local partners, PT
\nKrueng Gasui, which owns an undisputed 10 percent of the first of
\nthe three Busang delineated exploration zones, and PT Askatindo
\nKarya Mineral, which owns a 10 percent interest in each of the
\nother two zones.<\/p>\n
In a surprise move, Syakerani of PT Askatindo reportedly sold
\n50 percent of his shares in the company to timber baron Bob
\nHasan, a politically-well-connected businessman.<\/p>\n
Sudjana confirmed yesterday that the government would let
\nlocal companies enter the Canadian joint venture to increase
\nIndonesian interests in the Busang mine which reportedly holds
\nmore than 57 million ounces of gold.<\/p>\n
He stressed that the opportunities were not only open to Bob
\nHasan but also to other Indonesian businessmen interested in
\nentering the massive Busang gold deposit.<\/p>\n
On Tuesday, Placer Dome Inc., another Canadian gold miner,
\noffered to merge with Bre-X, which found the deposit, to expedite
\nthe development of the Busang gold reserves.<\/p>\n
Placer Dome said its proposal provided for significant
\nIndonesian ownership of the gold mine as well as an opportunity
\nfor Bre-X shareholders to gain while continuing their
\nparticipation in Busang.<\/p>\n
Sudjana said that he would study Placer Dome's proposal which
\npromised 40 percent Indonesian ownership.<\/p>\n
Sudjana confirmed yesterday the government would not increase
\nits stake in the joint venture because of financial constraints.
\nBut it would give an opportunity to local enterprises to take a
\nmuch bigger stake in the gold venture. (rid\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-wants-bigger-local-busang-stake-1447893297",
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