Government receives 176 mining applications

JAKARTA (JP): The government is processing 176 applications for contracts of works in the country's mining sector, says Minister of Mines and Energy Ida Bagus Sudjana.

Sudjana said in a hearing with House Commission VI on manpower and investment last week the applications would be the seventh generation of the contracts of works granted to mining companies.

He said the applications would be submitted to the House for approval.

"Any application for mining contracts needs an endorsement from the House before being signed by the President," the minister said.

The 179 applicants, he said, were interested in exploring and mining gold, copper and coal in various locations, including in Sumatra (30 firms), Maluku (four firms), Sulawesi (nine firms), Irian Jaya (six firms) and Nusa Tenggara (three firms).

The House has approved 70 applications including two gold mining projects in Busang, East Kalimantan (Busang II and III), but the President has yet sign them.

The 70 applications will be the sixth generation of contracts of works issued by the government.

Sudjana denied the dispute over the gold mines in Busang had made the President delay signing the other 68 applications.

The gold mines in Busang, believed to contain 57 million ounces of gold, are a bone of contention between several companies.

The dispute involves Bre-X Minerals Ltd. which found the gold mines, Canadian gold mining giant Barrick Gold Corp and some local partners.

The government has given them until Feb. 15 to settle their dispute.

Sudjana said if they failed to settle their dispute, the two gold mining projects in Busang would come up for grabs in the seventh generation mining contracts. Then Bre-X and Barrick would have to go through all the application procedures again, including submitting the proposal. (jsk)