12 mining firms agree to amend contracts

As many as 12 mining companies have agreed to amend their contracts as the result of renegotiation with the government, Bisnis Indonesia reported on Wednesday.

Director General of Mineral and Coal at the Energy and Mineral Resources Ministry, Thamrin Sihite, said in Jakarta on Tuesday that the 12 mining firms comprised of 10 coal miners and two mineral producers.

The two mineral companies are
1. PT. Tambang Mas Sable
2. PT. Tambang Mas Sangihe

The ten coal companies are
1. PT. Asmin Bara Jaan
2. PT. Bangun Benua Persada
3. PT. Batu Alam Selaras
4. PT. Kadya Caraka Selaras
5. PD. Baratama
6. PT. Selo Argokencono
7. PT. Sumber Kurnia Buana
8. PT. Tanjung Alam Jaya
9. PT. Mandiri Inti Perkasa
10. PT. Dharma Puspita

The government has begun renegotiation with mining companies since early last year to ensure that all of the mining contracts and permits comply with the 2009 mining law.

The renegotiation cover six main issues, including the increase in royalty payments, the obligation to process mineral ores in Indonesia, the use of local goods and services, divestment, contract extensions and the size of mining areas.

According to data from the Energy and Mineral Resources ministry, as of Nov. 13, the number of non-coal mining contract (KK) holders is 37, while coal contract of work (PKP2B) holders is 74.

The result of the renegotiation for KK contract holders as of Nov.13 shows that two of the mining firms agree with the changes proposed in the renegotiation, 29 firms partly agreed and the other six have not reached agreement. Meanwhile, for PKP2B permit holders, 10 firms have agreed with all the proposed changes, and 64 miners have partly agreed.

The ministry hopes that at least 13 of PKP2B permit holders and 6 KK contract holders agreed to amend their respective permits and contracts before the end of this year. (*)