At least 95 mining contracts terminated since 2000

The Ministry of Energy and Mineral Resources has terminated at least 95 mining contracts since 2000 as the operators failed to fulfill the terms and conditions stated in their respective contracts.

Mangantar S. Marpaung, the director for mineral and coal development at the ministry, said in Jakarta on Thursday that the contracts that had been terminated included contracts of works (KK) and coal contracts of works (PK2B).

The PK2B contracts that have been terminated include those given to PT Dayalapan in East Kalimantan, PT Persada Permata Mulia in Papua and PT Trimata Benua in South Sumatra, while mining operators which have lost their KK contracts include PT Sungai Kencana in West Kalimantan, PT Jambi Wildcat Mas in Jambi and PT Kodeco Yapen Mandiri in Papua.

"The termination of the contracts indicated the ministry's strong commitment in overseeing mining operations," he said.

According to the ministry's data, the number of KK contracts, that have so far been terminated, reached 120 while those of PK2B totalled 53 contracts.

The ministry has not issued any new mining contracts since late 2000 as investors are waiting for the issuance of the new mining law. The government has proposed a revision in the mining law No. 11/1967 but the change has not been approved by the House of Representatives. (Godang)