Busang brings happy outcome

Busang brings happy outcome

After a deadline was imposed by the government, the fight for
the huge Busang gold reserves was concluded. The outcome has
satisfied the various parties which had been quite critical in
their comments on the contest for control of the treasure.
According to an announcement made by the Minister of Mines and
Energy IB Sudjana, national equity share in the project would
amount to 55 percent of the total, while the foreign party
involved, Bre-X Minerals Ltd., would control only 45 percent.

The entry of (Indonesian businessman) Bob Hasan appears to
have contributed to a considerable extent to the success of the
Busang deal. It can be said that the successful conclusion of the
Busang contest has elevated Bob Hasan to a new type of tycoon. So
far he has only been known as a timber tycoon, in the future he
will also be a gold mining tycoon.

What surprised many observers was the debacle suffered by a
number of companies, also owned by people of considerable
influence. For example, PT Panutan Duta is owned by Sigit
Harjojudanto. The company was said to be in alliance with Bre-X.
Barrick, which also lost out in the deal, was said to be working
in alliance with a company owned by Siti Hardijanti Rukmana.
According to Barrick, however, its affiliation with Siti
Hardijanti Rukmana is unrelated to Busang and will thus continue
in areas of endeavor other than the Busang project.

After the agitation has cooled down, the next steps appear to
be easy. The draft contract of work which Bre-X and its local
partners will submit to the government is likely to receive
official approval before long. Then only the on-site operations
will remain. These, however, may prove to be just as complicated
as the past negotiations.

-- Jawa Pos, Surabaya