Intrepid should get permit to operate in Indonesia: Official
Monday, August 6 2012 - 02:27 AM WIB
"Intrepid should comply with regulation No 24 /2012," he said, adding that under the regulation, a permit issued by local government to companies fully owned or partly owned by foreigners should get approval from the central government.
Intrepid is reportedly to have a business interest in PT Indo Multi Niaga (IMN) which operates the Tumpang Pitu gold mine in Banyuwangi, East Java.
An Australian company IndoAust Mining has threatened to file a legal suit against Intrepid for forcefully taking over IndoAust?a business interest in the Tumpang Pitu gold mine.? We will file a legal suit either in Indonesia or Australia," Paul Willis, IndoAust?s executive, said as reported by Antara.
According to him, in early 2006, based on IndoAust?s direction, IMN applied for a mining permit to develop the Tumpang Pitu mine which covers about 11,600 hectares. Because a foreign firm was not allowed to have a mining permit, IndoAust established IMN which is 100 percent owned by Indonesian residents.
On Aug 21, 2006, IndoAust and IMN signed a mining development agreement ( MDA ) with an ownership composition of 70 and 30 percent. Under the agreement, IMN also authorized IndoAust to control and finance all IMN?s activities.
On Aug. 7, 2007, based on a report by independent consultant, Hellman & Schofield Pty Ltd, the Tumpang Pitu mine has gold reserves of 3.1 million ounces worth US$30 million. And then in Aug 19, 2007, IndoAust and IMN signed an "alliance agreement" (AA) with Emperor Mines to boost exploration activities. Emperor later merged with Intrepid Mines. On March 31, 2008, Intrepid failed to meet the AA which resulted in the termination of the cooperation.
However, Willis said, on April 21, 2008, Intrepid forced to sign a document which would effectively release the interest of IndoAust in the Tumpang Pitu mine.
"I only received compensation of A$2 million, while I had spent about $4.5 million. It was not fair,? he said. Intrepid then signed an agreement with IMN which gave a production split of 80 percent. The agreement was against the law, because a foreign party is not allowed to have business interest in mining rights, he added. (*)