Nusamba, Freeport quit Busang gold project<\/p>\n
JAKARTA (JP): Indonesia's Nusamba Group and Freeport-McMoRan
\nCopper and Gold decided yesterday to quit the Busang gold project
\nafter Bre-X Minerals Ltd.'s claim of a huge gold deposit in
\nBusang proved to be a hoax.<\/p>\n
Nusamba's president Muhammad \"Bob\" Hasan said last night his
\ngroup had no reason now to remain in the Busang project. Nusamba
\nis controlled by President Soeharto chaired foundations.<\/p>\n
Freeport McMoRan Copper and Gold announced separately last
\nnight that it was withdrawing from the Busang project.<\/p>\n
\"Freeport has the right to participate as a 15 percent owner
\nof the Busang project, subject to the confirmation of the
\nexistence of a commercially viable resource, which does not
\nappear to exist based on the information obtained by Freeport
\nduring its due diligence review, as now confirmed by the results
\nof the Strathcona audit,\" Freeport's Chairman James R. Moffett
\nsaid in a statement.<\/p>\n
The politically well-connected Bob talked Bre-X into accepting
\nNusamba and Freeport as shareholders of the Busang gold property
\nin February after two of President Soeharto's children engaged in
\na bidding battle to get a piece of the \"huge gold deposit\".<\/p>\n
Nusamba and its Indonesian partners were given 30 percent,
\nFreeport 15 percent and the Indonesian government 10 percent.
\nBre-X held the remaining 45 percent under an agreement concluded
\nmid-February.<\/p>\n
Bob said his group, which had not yet spent anything on the
\nproject, would not file a law suit against Bre-X's management.<\/p>\n
\"It is up to the Toronto and New York stock exchanges to file
\nsuits against Bre-X,\" said Bob, President Soeharto's business
\nconfidant.<\/p>\n
But he said he foresaw tougher government rulings on gold
\nmining in Indonesia as a result of the hoax.<\/p>\n
In a related development, Mines and Energy Minister I.B.
\nSudjana promised yesterday to impose sanctions on the Canadian
\nexploration firm Bre-X Minerals Ltd. if it was proved to have
\nbreached Indonesian law.<\/p>\n
Sudjana said he had yet to receive an official report on the
\naudit results of the Busang gold field in East Kalimantan by the
\nCanadian mining consultant Stratchona Mineral Services Ltd.<\/p>\n
\"We will take strong action and impose sanctions, if it (Bre-
\nX) breached the (Indonesian) law. For the moment, we'd better
\nkeep silent until we receive an official report (from Bre-X),\"
\nSudjana said after a ministers' meeting.<\/p>\n
Meanwhile Jusuf Merukh, PT Krueng Gasui's president said he
\nstill hoped the property contained some gold. Krueng Gasui
\nclaims to be a minority partner in the Busang property.<\/p>\n
\"It happens in mining that one prospector finds gold in an
\narea where ten miners failed,\" said Jusuf.<\/p>\n
Warrent Beckwith, chairman of Krueng's partner Golden Valley
\nMines NL, said that despite Stratchona's analysis he still
\nbelieved Busang II and III held gold.<\/p>\n
He said Krueng and Golden had found gold after drilling 19
\nholes in the area, including the Busang II and III zones, in
\n1989. (jsk\/rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/nusamba-freeport-quit-busang-gold-project-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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