Amendment of Newmont?s contract delayed

The Ministry of Energy and Mineral Resources is expected to once again miss the new target to conclude this month the amendment of PT Newmont Nusa Tenggara mining contract of work due to the recent reshuffle at the ministry.

Newly-appointed Director General of Mineral and Coal Bambang Gatot Ariyono was quoted by Bisnis Indonesia as saying that the ministry has yet to resume the routine weekly contract renegotiation talks with PT Newmont since the reshuffle.

As such, an earlier target to finally sign the contract amendment by the end of this month may not be achieved.

Bambang added that the ministry and the Ministry of Finance are also still in talks to formulate new financial obligations of mining firms, which would be included the amendment of the contract.

Bambang did not say when the amendment of PT Newont contract would be concluded.

Meanwhile, PT Newmont Spokesperson Rubi Purnomo was quoted by the paper was saying that the company hopes to be able to conclude the amendment process as soon as possible.

The amendment of the contract of miners operating in the country is stipulated under the 2009 Mining Law. So far, the government has only concluded the amendment of PT Vale Indonesia Tbk?s mining contract. (*)