Canadian firms dominate seventh-generation COWs
Canadian firms dominate seventh-generation COWs
JAKARTA (JP): Canadian mining companies dominate the seventh
generation contracts of work (COWs) which are now being examined
by the House of Representatives, accounting for 75 percent, or
124, of the total 164 COWs.
According to Ministry of Mines and Energy data, applicants of
the seventh generation COWs also include companies from
Singapore, Australia, the United States and South Korea.
The companies mostly prospect for gold in Kalimantan, Sumatra,
Sulawesi, Nusa Tenggara and Irian Jaya.
Canada's Yamana Resources Inc is the largest applicant in
terms of the number of applications, with 12 contracts covering
2.7-million hectares in Kutai and Bulungan district, East
Kalimantan.
The company will cooperate with local companies PT Prakarsa
Minindo Utama, PT Dharma Intimanuggal and PT Netra Asia in
prospecting for gold, copper and nickel in the areas.
Canada's Corsair Exploration Inc is the second largest
applicant in terms of applications, with seven COWs covering
80,000 hectares of mining fields in Kutai district, East
Kalimantan; Gowa district, South Sulawesi; Mongondow and Bual
Tol-Toli districts in North Sulawesi.
Corsair Exploration Inc only prospects in those areas,
according to the ministry's data sent to House Commission VI for
mining.
Other contractors which applied for more than one COW include
Canadian companies Barrick Gold Corp, International Pursuit Corp,
Ivanhoe Capital, Minorca Resources Inc, Teck Mining Ltd, Ingold
Holding Indonesia Inc; Singapore's Aberfoyle Investment Pte Ltd;
Australia's MM Gold Pty Ltd; and the United States' BHP Minerals
International Expl. Inc.
According to the data, most of the contractors will develop
mines in joint ventures with Indonesian companies which will have
between 5 percent to 30 percent stakes in the ventures.
State-owned mining company Aneka Tambang applied for nine COWs
in joint ventures with Singapore's Aberfoyle, Australia's Western
Mining Corp, Australia's Herald Resources Ltd and BHP Minerals.
Other Indonesian companies which have set up joint ventures
with foreign contractors for the seventh generation COWs include
PT Prakarsa Minindo Utama, PT Mas Abadi Sakti, PT Dharmala
Intimanunggal, PT Netra Asia and PT Austindo Mining Corp.
Director General of Mining Adjat Sudradjat said in a recent
hearing with the House that the Ministry of Mines and Energy had
studied the performance of the Canadian investors by, among
others, asking for information from the Canadian Embassy in
Indonesia and the Indonesian Embassy in Canada.
"The ministry has also studied the profile of each company,"
said Adjat.
Adjat said measures had been taken to prevent such cases as
the Busang scandal in East Kalimantan.
Canadian firm Bre-X Minerals claimed to have found the world's
largest gold deposit in Busang, prompting many giant companies as
well some eminent Indonesians to vie for claims in the mine.
An independent study by Canada's Stratchona Mineral Services
Ltd later said the Busang gold deposit was insignificant. (jsk)