Govt to soon sign coal contract amendment, meets hard times with mineral miners
Friday, December 22 2017 - 02:33 AM WIB
The Ministry of Energy and Mineral Resources is set to soon sign the amendment of coal contract of work (PKP2B) of the country?s large coal miners, but is facing hard times to reach agreement with mineral miners holding the mining contract of work (KK), Bisnis Indonesia reported on Friday.
The paper quoted the ministry?s Director General of Mineral and Coal Bambang Gatot Ariyono as saying that the amendment process of the PKP2B of the remaining 18 coal miners has been concluded, and that the new contracts are set to be signed in January of 2018.
Of the total 68 PKP2B coal miners, which account for around 80 percent of the country?s coal production, 50 have signed their contracts amendment to comply with the terms set under the 2009 Mining Law, which among others aims to ensure greater revenue for the state.
Meanwhile, Bambang said that the ministry has been facing difficulties in reaching agreement with mineral mining companies to amend their KKs.
He said that which negotiations with five KK miners have reached ?advance stage,? negotiations with other KK miners are still a long way to go from reaching agreement.
He said that the ministry has yet to decide whether to proceed with an earlier threat from Minister of Energy and Mineral Resources Ignasius Jonan for the ministry not to approve the 2018 work and budget plan of the KK miners if they fail to conclude the contract amendment by the end of this year.
Of the total 34 KK mineral miners, 21 have signed contract amendment with the government. One of those which have yet to sign the contract amendment is gold and copper giant PT Freeport Indonesia. (*)