Jakarta to seek parl't ratification on mining deals
Date: 22-Mar-02
Country: INDONESIA
Wimpy Tjetjep, director general of geology and mineral resources at the Mines and Energy Ministry, said parliament ratification was needed to reassure investors over the rules, which protect forests and ban open-pit mining in those areas.
He said the contracts included a nickel project on Gag island in remote eastern Papua province that has been suspended because of the rules.
Canadian nickel giant Falconbridge Ltd and BHP Billiton Plc/Ltd signed a joint venture in June 2000 to consider developing Gag island, but the conservation moves led to a suspension of the project.
"We will bring to parliament about 50 existing mining contract to get their ratification. Parliament needs to do this...to give certainty to investors about their operations in this country," Tjetjep told reporters, without giving a timeframe.
He said the Forestry Ministry and the Mines and Energy Ministry had "basically" reached a common understanding about the importance of mining to Indonesia's economy.
"There will be no mining development in regional areas, especially in the eastern part of Indonesia, if there is no flexibility on the forestry law. There will also be no revenue from those areas' natural resources," Tjetjep said.
Tjetjep said the 50 contracts comprised a range of foreign and local companies involved in coal, nickel and gold mining.