Busang infrastructure requires Rp 3 trillion

Busang infrastructure requires Rp 3 trillion

JAKARTA (JP): Infrastructure development at the Busang gold
mine in Mekar Baru village in Kutai, East Kalimantan, is
estimated to cost Rp 3 trillion (US$1.27 billion).

Kutai Regent HM Sulaiman said such a high cost would not only
cover the construction of public utilities but also the human
resources and environmental management in the vicinity of the
gold mine.

Infrastructure development would also help speed up the
development of interprovincial highways connecting East
Kalimantan and Central Kalimantan through Kutai regency, he said.

"The infrastructure development would help reduce the
socioeconomic gap between regencies," he said, adding he had
reported the progress to the East Kalimantan governor.

In a related development, two Canadian firms, Bre-X Minerals
and Barrick Gold Corporation, had not reached a deal over the
Busang gold mining reserve.

The Indonesian government is set to have a 10 percent share in
the mine while the remainder will be split between the two
Canadian companies.

According to earlier reports, the Barrick Gold Corporation
was to hold 67 percent and Bre-X 23 percent of the Busang gold
mine, though it is now under dispute.

Bre-X estimates that the Busang gold deposit contains 57.33
million ounces of gold reserves.

Minister of Mines and Energy I.B. Sudjana has asked the two
Canadian gold firms to publicly announce their deal on the huge
gold mine soon.

The minister said the announcement would show their
seriousness about the mining project and ensure that both sides
were consistent in their deal.

"We expect them to announce their deal on the Busang gold mine
soon. They should do it before reporting to us," Sudjana
announced.

He said that after the two companies reported their deal to
him, he would report it to President Soeharto.

He also said the government would not advise the two firms on
how to settle their dispute over the mine, which he said was in
order to avoid being accused of forcing the two companies to
reach a deal. "We wouldn't like that," he said. (09)