Proposed COW changes not final: Sudjana<\/p>\n
JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana said
\nyesterday that the government's proposed changes to seventh
\ngeneration mining contracts of work (COW) were not yet final.<\/p>\n
\"The amendments are still being discussed at staff level,\"
\nSudjana was quoted by Antara as saying after a meeting of
\neconomic ministers to prepare for the monthly cabinet session on
\neconomic affairs tomorrow.<\/p>\n
He said that since his staff had not yet given him a final
\ndraft of the proposed changes he could not say how many shares
\nforeign mining contractors would have to give the government
\nunder the new contracts.<\/p>\n
The government's intention to change several principal terms
\nin seventh generation COWs was revealed when mining officials
\nsummoned foreign contractors to a briefing last Tuesday.<\/p>\n
The meeting was followed by another briefing session Thursday
\nof companies applying for coal mining contracts.<\/p>\n
Contractors were reportedly given until today to respond to
\nthe government's proposals which called for, among other things,
\ngovernment equity of at least 10 percent and a share in capital
\ngains generated by public share offerings.<\/p>\n
State Secretary\/Minister Moerdiono, apparently in an attempt
\nto remove confusion over the proposals, said again last week that
\nthe ruling that allowed wholly-owned foreign companies to operate
\nin the mining sector and other sectors of the economy would not
\nbe changed.<\/p>\n
Moerdiono said he did not know of any ruling that would make
\nit compulsory for foreign mining contractors to give an equity
\nstake to the government at the outset of commercial operations.<\/p>\n
Director General of Mines Adjat Sudradjat also said last
\nFriday that the proposed changes covering 17 points in the
\nseventh generation COWs were not set.<\/p>\n
\"The proposed changes are negotiable,\" Sudrajat told reporters
\nagain yesterday.<\/p>\n
Most foreign companies were stunned by the government's move,
\nsaying the proposed changes were entirely unacceptable as the
\ndraft contracts were initialed last year.<\/p>\n
Under mining sector licensing procedures, the mining minister
\nmust consult the House on contracts before they are approved by
\nthe President.<\/p>\n
Discussions on the proposed COW amendments are expected to
\ndominate the working session with Sudjana and the House's
\ncommission dealing with mining and industry today. (vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/proposed-cow-changes-not-final-sudjana-1447893297",
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