BHP Billiton in talks with possible partners to develop Gag island nickel

Resources company BHP Billiton said it was in talks with several several companies as possible partner to develop huge nickel resources in Gag island, Papua province.

?But talks will be useless unless protected forest issue be resolved first. Our previous partner Falconbridge quit the project because of prolonged uncertainty,? said Andrew Wilson, president of BHP Billiton Indonesia.

BHP Billiton was forced to suspend activities on the island following the issuance of the Forestry Law No. 41/1999, which bans open-pit mining in protected forests, and the announcement by the ministry of forestry that the contract area was protected. BHP Billiton and its partner Aneka Tambang started exploration on the island in 1996 and received the mining contract of work from the government for their joint venture in February 1998.

BHP Billiton has 75 percent stake in the project, while Antam has the remaining 25 percent.

The forestry law caused more than a hundred exploration activities halted, and the government is trying to get parliament?s nod to allow at least 22 mining companies to resume their activities. (alex)