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)