More firms apply for mining contracts<\/p>\n
JAKARTA (JP): More foreign and joint venture companies are
\napplying for contracts of work (COWs) to explore and develop
\nmineral resources in Indonesia, a Ministry of Mines and Energy
\nsource said yesterday.<\/p>\n
The source said that "in January to April alone, the ministry
\nhas received dozens of applications."<\/p>\n
The Directorate General of General Mining was processing the
\napplications before submitting them to the minister of mines and
\nenergy, I.B. Sudjana, he said.<\/p>\n
As of last December the ministry had received 176 applications
\nmostly from Canadian exploration and mining companies.<\/p>\n
The applications are to be part of the seventh generation of
\nthe ministry's COWs.<\/p>\n
The ministry says President Soeharto approved 78 sixth
\ngeneration contracts of work this month.<\/p>\n
The head of the sub-directorate for mining development, Simon
\nF. Sembiring, has corrected The Jakarta Post's report that the
\nministry would limit COW holders to 62,500 hectares in the
\nseventh generation of COWs.<\/p>\n
He said contractors could apply for bigger areas for general
\nsurveys but could only retain a maximum 65,500 hectares
\nof contract area at or before the end of the feasibility study.<\/p>\n
Mining activities are done in the following phases: general
\nsurvey (one year), exploration (three years), feasibility study
\n(one year), construction (three years) and production (30 years).<\/p>\n
The new regulation stipulates contractors have to relinquish
\n25 percent of their original contract area to the government at
\nor before the end of the general survey phase.<\/p>\n
They then have to relinquish another 25 percent at or before
\nthe second year of exploration, and another 25 percent at or
\nbefore the end of the feasibility study.<\/p>\n
After being reduced 25 percent at or before the end of
\nfeasibility study, the contract area could not be more than
\n62,500 hectares, Simon said.<\/p>\n
In the past, contractors had to gradually relinquish 75
\npercent of their original contract area to the government and end
\nup keeping only 25 percent of the area whatever the size was.
\n(jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/more-firms-apply-for-mining-contracts-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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