Indonesia, Canada to build mining cooperation

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)