President may take over Busang case<\/p>\n
JAKARTA (JP): Minister of Mines and Energy Ida Bagus Sudjana
\nsaid President Soeharto will take over thm Busang gold case if
\nBarrick Gold Corp. and Bre-X fail to seal their partnership deal
\nby Feb. 15.<\/p>\n
\"We hope the two Canadian companies conclude the deal before
\nthe Feb. 15 deadline so that we do not need the President's help
\nto decide what to do,\" he said after a cabinet meeting.<\/p>\n
Barrick and Bre-X are currently engaged in intensive
\nnegotiations about the establishment of a joint venture to manage
\nthe Busang II gold mine. The two Canadian companies have agreed
\nto the government's proposal to allocate 67.5 percent of the
\nplanned joint venture's shares to Barrick and 22.5 percent to
\nBre-X, which discovered the gold deposit in the Busang mine, and
\nanother 10 percent to the Indonesian government.<\/p>\n
But the two Canadian companies have yet to finalize a deal.<\/p>\n
Competition for a stake in the Busang II gold mine in East
\nKalimantan has increased with the entrance of more foreign and
\nlocal companies.<\/p>\n
The foreign companies include Canadian mining firms Placer
\nDome and Teck, and Newmont of the United States. State-owned
\nmining companies, PT Tambang Timah and PT Aneka Tambang, are also
\nin the running.<\/p>\n
State-owned gold and nickel mining company PT Aneka Tambang
\nhas announced its intention to acquire a stake in the gold
\nreserve reported to contain a potential 57 million ounces of
\ngold.<\/p>\n
PT Tambang Timah Tbk., another state company under the
\nsupervision of the Ministry of Mines and Energy, also has
\nexpressed interest. The minister has given Tamban Timah the go-
\nahead to exploit the mine, and according to the firm's president,
\nErry Riyana Hardjapamekas, it has held serious discussions with
\ntimber baron Moh. Bob Hasan.<\/p>\n
Bob Hasan, a politically-well connected businessman, has
\nbought 50 percent of Syakerani's shares in PT Askatindo, Bre-X's
\nlocal partner.<\/p>\n
Sudjana confirmed earlier that the government would not
\nincrease its stake in the joint venture because of financial
\nconstraints and would give the opportunity to local enterprises.<\/p>\n
Placer Dome is offering the government a 40 percent stake in
\nthe venture, much more than the 10 percent offered by Barrick.
\n(09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/president-may-take-over-busang-case-1447893297",
"image": ""
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