Fri, 19 Jul 1996

Firms to explore for gold in Aceh

JAKARTA (JP): Six foreign mining companies have submitted contract proposals to the government to explore for and extract gold in various areas of Aceh.

"The companies have already obtained licenses for preliminary studies from the directorate general of mines. And they have completed their studies," the chief of Aceh's mines and energy office, Mahbub Iskandar, was quoted by Antara as saying yesterday.

"Those foreign companies are interested in exploring for gold in those areas because their studies show that there are gold deposits," Mahbub added. The areas of interest total 1,857 hectares.

He said the companies also expect to maintain a major stake -- up to 80 percent -- in the proposed exploration projects, while local partners might take only 20 percent.

He said that the foreign companies appointed Indonesian companies as their partners before applying for the contracts.

The foreign companies are East Kalimantan Coal PTE LTD of Singapore (with PT Arlian Karyamaska as its local partner), Phelps Dodge Exploration Corporation of the United States (with PT Tambang Timah), Barrick Indonesia LTD of Canada (with Quralon PTE. LTD of the Mutiara Group and PT Mutiara Mitramin), Lansdowne Holding SV of Holland (with PT Askatindo Karya Mineral), Highlands Gold PTY LTD of Papua New Guinea (with PT Marhauma Subur) and Minorca Resources LTD of Canada (with PT Askatindo Karya Mineral).

Mahbub said that the provincial administration has also delivered the proposals for the contracts to the House of Representatives for deliberation.

Under current procedure, each contract can only be awarded to a company following Presidential approval based on the House's recommendation. (alo)