Team to check Busang gold deposit: Bob

JAKARTA (JP): Timber tycoon Mohammad "Bob" Hasan, chief commissioner of Nusamba Group, will send a team to East Kalimantan's Busang regency to check the area next week.

"I am sending my people to East Kalimantan within the next week," he said after PT Astra International's extraordinary general meeting.

Earlier this week the government approved a proposal to develop the gold find in Busang.

Canada's Bre-X Minerals Ltd will have a 45 percent stake, Indonesia's Askatindo Karya Mineral and PT Amsya Lyna and their partners 30 percent, Freeport-McMoRan 15 percent and the Indonesian government 10 percent.

Nusamba is 80 percent owned by three foundations chaired by President Soeharto. The remaining 20 percent is divided equally between Bob and President Soeharto's eldest son Sigit Hardjojudanto. Nusamba has bought 50 percent of PT Askatindo Karya Mineral and PT Amsya Lyna.

Bob said the joint venture company to explore and develop the Busang gold mine had not yet been set up.

But Minister of Mines and Energy I.B. Sudjana recently confirmed reports that Bre-X and its local partners had agreed to a joint venture to be called Busang Indonesia Gold to develop the mine.

Bob Hasan said he could not disclose how much it would cost to develop the gold find. "We have to make calculations first."

Bre-X estimates Busang's gold reserves at almost 71 million ounces; worth about US$24 billion (Rp 56.88 trillion) at the current gold price.

Bob could not say how much gold would be extracted from Busang a year. He said they did not know whether to extract 50 tons a year or 100 tons a year.

He refused to disclose how much Nusamba would invest in the project.

"It's a company secret. We will not let you know the financing sources," he said.

He said the government's recent approval of the proposal to develop Busang ended the widely publicized transaction involving many parties.

Mining analyst recently attributed the dispute to Bob. (09)