10 mining firms in Kalimantan cancel investment plans
Thursday, February 24 2000 - 02:36 AM WIB
At least 10 mining companies have canceled their plan to open their gold mining concession areas in Central Kalimantan, according to the province's vice governor Elieser Gerson.
The vice governor however said that he did not know why the companies delayed their mining projects. "The companies have yet to report the case," he said, saying that the cancelation could be due to difficulties to raise funding from banks.
According to media reports, protests and unrealistic demands mande by local residents have discouraged investors to enter the province. Nearly 80 timber companies in East Kalimantan recently threatened to close down their operation in response to continued conflicts with local communites.
Gerson said that at least 16 mining companies were doing their survey and exploration in Central Kalimantan at present in concession areas covering 1.6 million hectares. Besides big investors, there are more than 3,500 traditional miners operate in the province, known for its large gold deposit.
According to Kapos, the 10 mining investors that withdrew from the province are PATEC (Barbados) Ltd, KATEC (Barbados) Ltd, JATEC (Barbados) Ltd, MATEC (Barbados) Ltd, NATEC (Barbados) Ltd, QATEC (Barbados) Ltd, Twin Gold Co, BHP Mineral Ltd, Indogold Co, Brett Resources Inc.
Besides, the paper said, four companies have cancelled applying for mining contracts in Central Kalimantan. The companies are PT Sameco Mas Jaya, PT Scorpion Schawner Mineral, PT Bukit Danum Mineral, PT Tebolai Sang Perdana. (*)