Fight over Busang gold mine

Fight over Busang gold mine

From Bisnis Indonesia

A fight over the Busang mine between Bre-X Minerals Ltd., Barrick Gold Corp. and a private company has been raging for some time, while the government is appealing to the companies' generosity for a 10 percent share.

This resignation on the part of the government is strongly deplored by many sides who see the potential of the gold mine. Share ownership dominated by the government would greatly benefit the people in line with Article 33 of the 1945 Constitution.

The Minister of Mines and Energy says the government does not dispose of enough money to invest a lot in the project.

Mining consultants Transconsult Nusantaratama says the government should not be a shareholder because it may give rise to a conflict of interests.

I think the government has a very strong bargaining position and should ask for a minimum share ownership of 50 percent like it does for oil production sharing contracts.

If this is not possible, a number of state-owned companies can be asked to form a consortium to join their capital for a 50 percent participation.

If this is not feasible either, why not imitate Mr. Habibie's idea of PT Dua Satu Tigapuluh which collects funds from all state-owned companies and the people?

This type of company allows the collection of adequate funds for the Busang gold mine so that its yield is not profitable for foreigners only.

If this idea can be realized, the next step is the review of the position of the Freeport mines. The House of Representatives should fight for it.

JAHJA

Jakarta