Placer Dome sends proposal to President

Placer Dome sends proposal to President

JAKARTA (JP): Canadian mining giant Placer Dome Inc. confirmed
yesterday it had sent a letter to President Soeharto offering the
Indonesian government and future local partners up to 40 percent
of the stakes in Busang gold mine in East Kalimantan.

In the letter, Placer Dome president and CEO John M. Willson
asked to meet the President.

Willson said yesterday that he was still waiting for a reply.

Placer Dome offered Indonesia -- the Indonesian government as
well as Indonesian partners -- up to 40 percent ownership of the
stakes in what Willson called "the world's largest gold find in
500 years".

The remaining 60 percent would be owned equally by Placer Dome
and Canadian mining company Bre-X Minerals Ltd, which found the
Busang deposit which is believed to contain 57 million ounces of
gold.

Placer Dome, he said, was negotiating to merge with Bre-X,
which could be realized if the Indonesian government granted the
project to Placer Dome.

Another Canadian gold mining giant Barrick Gold Corp, in
league with the President's daughter Siti Hardiyanti Rukmana, is
also bidding for the gold mine. It proposes to take a 67.5
percent shareholding and give Bre-X and its local partners, PT
Askatindo Karya Mineral and PT Amsya Lina, a 22.5 percent stake
and the Indonesian government 10 percent.

Placer Dome's general manger for Asian operations, John E.
Loney, said that Barrick was the largest gold mining company in
North America with market capitalization of Can$8.9 billion,
followed by Placer Dome with Can$7 billion.

Willson said Placer Dome considered it was fair to offer
Indonesia a 40 percent shareholding.

He said that, based on its mining experience in tropical
countries such as Papua New Guinea, the Philippines and Chile,
Placer Dome was aware that it should share the mine's benefits
with local people to make it successful.

Informed sources here speculate that Placer Dome will team up
with timber tycoon Muhammad "Bob" Hasan, who recently bought 50
percent of the shares of Askatindo Karya Mineral, to bid for the
project.

Placer Dome recently hired the public relations company
Mercurindo, which is owned by Bob Hasan.

Willson admitted that he had met Bob Hasan, in his capacity as
president of Nusamba group, but denied they would join to bid for
the project.

"I think as far as I know Bob Hasan is an excellent man, a
very clever businessman. And he is a good friend of the President
and above all he is a very straight man," Willson said when asked
if Bob Hasan would become Placer Dome's partner in the Busang
gold mine. (jsk)