Gencor to mine in RI

Gencor to mine in RI

JOHANNESBURG (Reuter): South African mining house Gencor Ltd said it hoped to reach an agreement within weeks with Indonesia's state mining company PT Aneka Tambang on exploring and developing nickel deposits on Halmahera island.

"We are in discussions and we are optimistic that an agreement of principle, a letter of intent, will be reached within the next few weeks," a Gencor spokesman told Reuters.

Last month Aneka Tambang vice-president Aditya Sumanagara said he expected a deal with Gencor to be reached soon.

The Gencor spokesman said the two parties were in the process of defining what the joint venture project would entail and whether or not it was necessary to bring in a third party.

"But there is nothing concrete yet and it all depends on the discussions over the next few weeks," he said.

Asked about Gencor's talks over a venture with a Cuban mining company, the spokesman said, "We're optimistic that a decision will be taken in the near future."