Government receives 176 mining applications

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)