Government hopes to complete mining contract amendment by year-end
Thursday, November 10 2016 - 03:22 AM WIB
Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono said on Wednesday that the government hopes to complete the amendment of coal mining contracts of work (PKP2B) and mineral mining contracts (KK) by the end of this year.
?We?ll complete the contract amendment. Out target is that before January (next year) it can be completed,? said Bambang.
The government has repeatedly missed targets to complete the negotiation with miners in amending their contracts, which is aimed to adjust the contracts to terms set in the 2009 Mining Law including higher revenue for the government such as from royalty.
According to Bambang, among of the tough issues which have yet to be settled include divestment obligation and higher royalty for the state.
Bambang said that of the total 34 KK miners, nine have signed agreement with the government for contract amendment, five miners have signed MoUs agreeing to the proposed changes, and 20 others are still in negotiation process with the government.
Meanwhile, of the 74 PKP2B miners, 22 have signed agreement for contract amendment, four signed MoUs, 43 still in negotiation process, and five contracts will be terminated.
Editing by Reiner Simanjuntak