Firms to explore for gold in Aceh

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)