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)