Investment in mining sector surges 38 percent

Investment in Indonesia's mining sector surged by about 38 percent in 2006 to about US$1.3 billion from $945 million in 2005, according to the year-end report issued by the ministry of energy and mineral resources.

Speaking to the press in Jakarta, on Thursday, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said a larger part of the investments were spent on general mines especially coal mining activities.

The minister said that the total investment in general mining activities reached a total of about $1.12 billion in 2006, comprising about $778.34 million in Contract of Work (KK)-based mining operations and about $275.46 million in Coal Contract of Work (PKP2B)-based mining operations and another $72.11 million in state-owned companies' mining concessions.

"The surge in the total investment was mainly due to a significant increase in the capital expenditure of KK and PKP2B mining companies especially those which have entered production stage," he said.

With regard to the geothermal sector, the investment reached $181.07 million. Of the total, about $36.86 million worth of investment were spent by Chevron Geothermal Salak, about $62.40 by Chevron Geothermal Indonesia and $56.41 million by Star Energy in Wayang Windu project. (*)