Construction of Newmont pier violates regulation

The planned construction of PT Newmont Nusa Tenggara?s pier near the Labuhan Kayangan port at the Benete bay, Sumbawa needs a prior approval from the local legislative council (DPRD), according to a councilor.

"The approval from DPRD is needed, as the construction of the pier would be financed with a loan from PT Newmont," Djumad Dachlan, a member of East Lombok legislative council representing the Indonesian Democratic Party of Struggle (PDI-P), was quoted by Bali Post daily.

?Without a prior approval, the construction of the pier will violate the regulation,? he said, adding that any loans raised by the local government should receive approval from legislators.

Akhmad Moegini, the spokesman for the East Lombok administration, said the new pier would be used by Newmont under a 12-year leasing contract, with an initial renting fee of Rp 27 million a month.

Newmont, under the cooperation agreement, agreed to provide a loan of Rp 529 million to finance the pier construction, which is made outside the regency?s annual budget plan.

The loan will be paid with the rental fees received from Newmont. ?But we hope, all the money could be repaid through the regency?s budget next year so that the rent could be received in full,? he said.

Newmont, a subsidiary of the United States-based Newmont Corporation, operates major gold and copper mining in Lombok. (*)