80 firms to get mining contracts

JAKARTA (JP): At least 80 foreign companies will soon receive contracts of works (COWs) to develop coal and mineral deposits across the country, according to a senior official.

Director General of Mining Adjat Sudradjat said Thursday that the 80 mining contracts had recently been approved by President Soeharto. "We hope to award the contracts to the investors this month", he added.

Seventy-two COWs are to develop mineral deposits, including gold, silver, copper and nickel and eight COWs are to develop coal deposits.

The 72 mineral COWs and eight coal COWs are respectively parts of the seventh generation mineral COWs and the third generation coal COWs that were approved by the House of Representatives last year.

Existing law requires all foreign applications for mining COWs to be approved first by the House of Representatives then by the President. Only after presidential approval can the Minister of Mines and Energy sign and award COWs.

The minister can sign applications for COWs from local investors without consulting the House and the President.

The government initially received 164 applications for the seventh generation mineral COWs and eight applications for the third generation coal COWs.

Ninety-nine applications were put forward for presidential approval, of which 19 have yet to be approved. 73 investors withdrew their applications following examination by the House of Representatives. Several reasons for withdrawal were cited, including a lack of finance.

Minister of Investment Sanyoto Sastrowardoyo recently said that of the 80 COWs approved by the president, 43 had been awarded to Canadian investors, 10 to Australian investors, nine to Singaporean investors, four to Panamanian investors and three to South Korean investors. About 70 percent of the applications for mineral COWs came from Canadian gold prospectors. (jsk)