32 companies withdraw COW applications
32 companies withdraw COW applications
JAKARTA (JP): Thirty-two mining companies have withdrawn their
applications for the seventh generation contracts of work which
are being deliberated at the House of Representatives, an
official said.
Director General of Mining at the Ministry of Mines and Energy
Adjat Sudradjat said in a hearing with House Commission VI for
mining, energy and manpower Tuesday that 11 of the 32 companies
had withdrawn their applications because they had not found a
prospective mineral resource on the concession area they applied
for.
The regulation allows contractors to explore the concession
areas they apply for once they gain preliminary approval from the
Ministry of Mines and Energy.
Adjat said 21 of the 31 companies withdrew their applications,
but they still wanted the government to process their
applications for the next generation.
Adjat said some investors were presently discouraged to
develop gold mining projects due to decreasing gold prices on the
international market.
They also faced difficulties raising money on the stock market
in Canada to finance Indonesian mining projects.
"But I hope the mood to invest in Indonesian mining projects
on the country's (Canada) stock exchange will turn bullish once
the House recommends the (seventh generation mining) projects,"
Adjat said.
The commission is currently examining the draft COWs to make a
recommendation as required by law.
The House deliberation is the final step before the COWs are
passed to the President for final approval.
The Ministry of Mines and Energy submitted to the commission
164 seventh generation mineral COWs and 12 third generation coal
COWs in July this year. It delivered another seventh generation
mineral COWs in August, bringing the total seventh generation
mineral COWs to 171.
Adjat said investors which had completely withdrawn their COW
applications included Barrick Gold Corporation (over one
concession area in Irian Jaya), Yamana Resources Inc. (three
concession areas in East Kalimantan), Chance Mining and
Exploration Co. Ltd. (four concession areas in West Kalimantan
and Central Kalimantan, a consortium of Terrex Resources Ltd. and
Cove Mining Ltd (one concession area in West Kalimantan) and
Atlanta Gold Corporation (one concession area in East
Kalimantan).
All the companies are from Canada except Terrex Resources Ltd.
and Cove Mining Ltd., which are from Australia.
The companies which wanted their applications to be processed
for the next generation included Corsair Exploration Inc.,
Olympic Resources Ltd., International Silver Ridge Resources
Inc., Penny Tech Inc., Jonpol Exploration, Stirrup Creek Gold
Ltd., Canada's Ivory Oils & Minerals Ltd. and Northpoint
resources Ltd. All of them are Canadian firms.
Commission member Muhsin Bafadal of the United Development
Party said yesterday the deliberations on the draft COWs at the
commission were not yet completed.
But he was optimistic the commission would finalize the
deliberations before the current House ended its term by the end
of the month.
"I think the discussion will run smoothly because the
government is willing to listen to our opinion regarding the
draft COWs," said Muhsin. (jsk)