Sudjana awards 65 mining contracts<\/p>\n
JAKARTA (JP): The minister of mines and energy, I.B. Sudjana,
\nawarded 65 sixth generation contracts of work (COWs) yesterday to
\njoint venture and foreign companies to explore for gold, nickel
\nand diamonds in Indonesia.<\/p>\n
\"The signing of these contracts proves that foreign investor
\ninterest in our mineral resources remains great,\" Sudjana said.<\/p>\n
Of the foreign contractors, 26 came from Canada, 22 from
\nAustralia, six from the United States, four from South Africa,
\ntwo from the Netherlands and one each from Papua New Guinea and
\nSouth Korea.<\/p>\n
Sudjana said the government was negotiating the seventh
\ngeneration of mining contracts which would have better terms for
\ninvestors and Indonesia.<\/p>\n
Sixty-one of the contractors, including Canada's Placer Dome
\nInc and Barrick Gold Corp will explore for gold, two for diamonds
\nin South Kalimantan and two others for nickel in Maluku and Irian
\nJaya.<\/p>\n
The contract areas are in 17 provinces. The areas are Aceh
\n(six contracts), North Sumatra (two), West Sumatra (three), Jambi
\n(one), Bengkulu (one), West Kalimantan (six), Central Kalimantan
\n(nine), South Kalimantan (four), East Kalimantan (seven), North
\nSulawesi (three), Central Sulawesi (two), South Sulawesi (one),
\nWest Nusa Tenggara (two), East Nusa Tenggara (two), Maluku (two)
\nand Irian Jaya (13).<\/p>\n
Sudjana said three other contracts President Soeharto
\ninitially approved had not been signed yet because the
\ncontractors had yet to established companies under Indonesian
\nlaw.<\/p>\n
The deputy chairman of the government COW negotiating team,
\nNursaleh Adiwinata, said the sixth generation originally included
\n70 COWs.<\/p>\n
\"But President Soeharto has not approved the other two
\napplications by the Canadian firm Bre-X Minerals for the two gold
\nprojects in Busang (Busang II and III) in East Kalimantan until
\nthe controversy over its gold find is settled,\" Nursaleh said.<\/p>\n
Nursaleh said the 68 COWs the President approved consisted of
\n61 joint ventures between foreign and domestic private companies
\nand Indonesian state-owned firms PT Aneka Tambang and PT Timah
\nand seven wholly-owned foreign companies.<\/p>\n
The contractors looked satisfied as some had waited for years
\nfor their COWs.<\/p>\n
\"I sent the applications in 1994. I understand in Indonesia it
\nnormally takes years to process applications like this,\" said
\nGary J. Atmont of the Canadian firm South Pacific Corp, which got
\nseven contracts.<\/p>\n
Nursaleh said a contractor under the sixth generation contract
\nwas required to spend between US$5 million and $40 million on
\nexploration and operate in Indonesia for between four and seven
\nyears.<\/p>\n
\"Each of the contractors has to relinquish 75 percent of their
\ncontract areas after the completion of the exploration period,\"
\nhe said.<\/p>\n
Nursaleh said the contractors had to pay land rents and
\nproperty taxes before their starting any production.<\/p>\n
The contractors have to pay a 30 percent income tax, down from
\n5 percent in the fifth generation COWs.<\/p>\n
But land rents and property tax are higher than before.<\/p>\n
Nursaleh said the new COWs required contractors to make
\nemploying locals a priority.<\/p>\n
The signing ceremony was attended by the governors of the 17
\nprovinces where the contractors will work.<\/p>\n
\"We invited the governors so the contractors get to know the
\nchiefs of the provinces where they will work,\" Sudjana said.
\n(jsk)<\/p>\n
Photo -- Page 10<\/p>\n
Busang -- Page 12<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/sudjana-awards-65-mining-contracts-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }