Govt to award three new coal contracts to BHP
Tuesday, August 22 2000 - 05:30 AM WIB
The government will award three new contracts of work to Australian giant business group Broken Hill Proprietary Ltd (BHP) to develop coal resources in Central and East Kalimantan.
Coal director at the Ministry of Mines and Energy Suyartono said on Tuesday the contracts would be awarded by Minister of Mines and Energy Susilo Bambang Yudhoyono to BHP's subsidiaries PT Juloi Coal, PT Ratah Coal and PT Lahai Coal in a ceremony at the ministry on Thursday.
Juloi Coal will get a mining concession covering 192,340 hectares in the North Barito Regency, Central Kalimantan, while Ratah Coal will receive a concession covering 99,940 hectares in both the Kutai Regency--East Kalimantan and the North Barito Regency. Lahai Coal will be given a concession covering 98,230 hectares in Kutai and North Barito.
"The contracts have gained approval from the House of Representatives, the President, and Minister of Investment and State Enterprises Development," Suyartono told Petromindo.Com.
Suyartono did not disclose the contract period but under the existing regulation, a mining contract is valid for 30 years.
Documents obtained by Petromindo also reveal that Bambang will also renew the contracts of tin mining company PT Koba Tin and granite producer PT Karimun Granite during the ceremony.
Both companies will have their contracts extended for another ten years from 2004 to 2013.
The ministry's data say Koba Tin is a joint venture between publicly listed state tin mining company PT Timah (25 percent) and Australian firm Kajuara Mining Corp.Pty. Ltd (75 percent). It received its contract covering 61,854 hectares on the Bangka Island, South Sumatra in 1971 and started production in April 1, 1973.
The data further say Karimun Granite is a consortium comprising two Hong Kong's investors Seville Raw Development Ltd (2.5 percent) and Eastern Fortune Ltd (2.5 percent) and five Indonesian investors PT Pendawa Sempurna (32.09 percent), Pt Bumi Sumber Sari Sakti (11.92 percent), PT Tatawahana Duta Persada (30.82 percent), and PT Gita Makmur Sentosa (20.16 percent).
Karimun received its contract covering 4,087hectares in Riau in 1971 and started production in September 30, 1973. (George Blunt)