House finally approves new mining contracts<\/p>\n
JAKARTA (JP): The House of Representatives has finally
\napproved the drafts of the controversial seventh generation
\ncontracts of work (COWs) to prospect and develop mineral
\nresources in the country, a legislator said yesterday.<\/p>\n
Iskandar Mandji of Golkar, said that Commission VI, which is
\nresponsible for assessing the contracts, would pass the contracts
\nwithout any changes.<\/p>\n
\"We have approved the contracts but we recommend the
\ngovernment further examine the applicants to prevent a scam,\"
\nMandji told The Jakarta Post yesterday.<\/p>\n
According to the existing law, all mining contracts should
\ngain House endorsement before being passed to President Soeharto
\nfor final approval.<\/p>\n
The seventh generation COWs, the latest series of contracts to
\nprospect and develop mineral resources, have sparked controversy
\nafter newspapers reported that members of Commission VI had
\nreceived \"illegal funds\" from the contract applicants to smooth
\nthe deliberation process.<\/p>\n
Commission VI for industry, mining, manpower and investment
\nhas delayed the COWs deliberation in protest of the bribery
\ncharge.<\/p>\n
The commission and the Ministry of Mines and Energy denied the
\nreports.<\/p>\n
Mandji said commission members approved the draft contracts
\neven though several companies had applied for \"so many
\nconcessions\".<\/p>\n
\"Do they really want to develop the concession they applied
\nfor or do they just want to sell the concessions to others later?
\nMany people are making money from selling mining concessions,\"
\nsaid Mandji, a commission member.<\/p>\n
\"That's why we want the government to further check
\napplicants,\" he said, adding that giving mining concessions of up
\nto two million hectares to a company was too much.<\/p>\n
According to the Ministry of Mines and Energy, companies which
\napplied for concession areas up to two million hectares include
\nCanada's Yamana Resources Inc. (11 concessions covering 2.1
\nmillion hectares) and Canada's International Pursuit (eight
\nconcessions of 2.8 million hectares). They both prospect for gold
\nin various areas throughout the country.<\/p>\n
The commission also found another Canadian company applying
\nfor 13 concessions covering areas of more than two million
\nhectares in Kalimantan using different names like Batec, Catec,
\nDatec, Eatec, Fatec, Gatec, Hatec, Katec, Matec, Natec, Patec and
\nQatec.<\/p>\n
\"We don't know why it uses different names. We hope there is
\nno bad intention behind it,\" said Mandji.<\/p>\n
A total 171 companies have applied for seventh generation COWs
\nbut 32 of them recently withdrew their applications.<\/p>\n
Mandji said the commission in its recommendation also urged
\nthe government to improve the shareholding of local companies in
\nmineral projects, which are now mostly owned by foreign mining
\ncompanies.<\/p>\n
Minister of Mines and Energy I.B. Sudjana earlier proposed a
\nchange in the draft COWs to allow the government to have a stake
\nin all mining ventures.<\/p>\n
But Sudjana withdrew his proposal following opposition from
\nthe applicants and mining experts, saying the proposal did not
\nmake sense. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-finally-approves-new-mining-contracts-1447893297",
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