Clarification on Busang required

Clarification on Busang required

Busang, a mere dot on the map of Kalimantan's interior, has
come to our attention again. The controversy is over the gold
deposits that are buried underneath the earth's surface at
Busang. If new data originating from Freeport McMoran Copper and
Gold are proven true, it is not impossible that Busang will come
to represent an embarrassing scandal for us.

The present controversy arose after an AFP report revealed the
results of surveys presumably made by Freeport, a partner of the
Bre-X company in the Busang II and Busang III mines, claiming
that the area's gold reserves were far below the amount that were
believed to be at present.

Bre-X previously claimed to have found gold reserves in the
area amounting to some 57 million ounces. But according to
Freeport, only 15 million ounces are present, which makes mining
economically unfeasible.

It is difficult for us to present a lucid evaluation of this
case. However, two things are worth noting. First, we do not
possess -- much less control -- any data about our own natural
resources. Second, we have become accustomed to the lack of
transparency in processes involving tenders and other such
matters. In this way, we regard even the most startling decisions
as commonplace.

Many questions could be asked about some very basic matters.
Such a condition obviously makes it easy for outsiders to profit
while we are forced to watch in bewilderment and become the
laughing stock of others.

It is advisable for the government to exercise restraint and
refrain from making clouded statements as this would only
increase confusion among the public. We are still hoping that the
Bre-X claim concerning the Busang gold reserves are supported by
accurate data. However, if the Freeport McMoran data should be
proven correct, sanctions should be made by the government
against Bre-X.

The most important step for the government to take would be to
employ independent geologists to conduct new surveys of the
Busang II and Busang III deposits. In addition, the mapping of
our natural resources, both on land and offshore, should be made
a top priority.

The question of cost appears to be irrelevant in this case. We
would also like to remind the government of the importance of
transparence in any decision making process. It would be even
better for the government to invite the public's participation in
such matters, either by consulting the House of Representatives
or by inviting public debate. Aside from being more democratic,
such a step would make the people more willing to accept any
risks involved in the case that anything goes wrong.

-- Bisnis Indonesia, Jakarta