Indonesia, Canada to build mining cooperation

JAKARTA (JP): The Canadian Embassy and the Indonesian Ministry of Mines and Energy will cosponsor an international seminar on mining to build cooperation and understanding between both countries in mining investment, the embassy said yesterday.

"I believe the seminar is an important step in building Canadian-Indonesian relations, and will contribute to our mutual understanding and trust in the mining industry," Ambassador Gary J. Smith said in a statement, adding the seminar would be held at the Horison Hotel on Nov. 3 and Nov. 4.

Smith said the seminar would explore, among others, methods of enhancing Indonesian-Canadian cooperation in mineral exploration and mining and strengthening mutual understanding of mining cultures and traditions, and mineral policies and regulations between the two countries.

The seminar will also explore Canada's capital markets and regulatory frameworks for raising mining finances.

Speakers at the seminar will include representatives from the Toronto Stock Exchange, the Vancouver Stock Exchange, the Prospectors and Developers Association of Canada, Natural Resources Canada and the Association of Indonesian Mining Professionals, the ambassador said.

Indonesian-Canadian relations in the mining sector has developed strongly throughout Indonesia's mining history.

One of the oldest and biggest mining company in the country is nickel producer PT International Nickel Indonesia, a subsidiary of Canada's Inco Ltd., operating in South Sulawesi.

Canadian companies also account for 75 percent of the 164 companies applying for seventh generation contracts of work which are being processed.

However, relations were recently tainted by the Busang gold scam which involved Canadian mining firm Bre-X Minerals and which embarrassed the Indonesian government.

Bre-X said last year it had discovered the world's biggest gold resource in Busang, East Kalimantan, prompting several mining giants and Indonesian politically well-connected businesses to compete for stakes in the gold field.

Bre-X collected a large fortune from the rising value of its stocks until an independent analyst later found Bre-X's claim was a hoax. (jsk)