Investors advised to delay investment in mining: Official
Tuesday, December 12 2006 - 03:03 AM WIB
Director General for Mineral, Coal and Geothermal of the Ministry of Mineral and Natural Resources Simon Sembiring said Monday in Jakarta that the law on mineral and coal is under discussion and is expected to be completed around January or February, 2007.
Simon also asked the investors to delay their investment plan until the government enacts the draft law on investment because there are some different points in the draft law on mineral and coal and on investment that need an adjustment.
He said that the draft law on mineral and coal put more emphasis on the regional authority in handling mining business. While, in the draft law on investment, there are points that limit the regional authority on the basis of investment value.
?I hear that investment of more than Rp50 billion is the authority of a regent but an investment of up to Rp100 billion is the authority of governor and if the investment is over Rp100 billion, then it is the authority of the Investment Coordinating Agency (BKPM). Based on the regulation in the draft law of mineral and coal, all of the mining related permits are the authority of region," he said.
He underscored the need to synchronize different points in the two draft laws, saying that hopefully, there won?t be any problem when the two draft are enacted.
Business people from China, he said, are interested in making investment in almost all kinds of mining, especially iron and nickel.
Simon revealed mining investment made by Chinese investor through mining authorities. Many licenses regarding the cooperation between business people and mining authorities have been issued by regents.
?Like iron ores, many iron ores are exported to China. It is a pity that we do not know exactly how many mining companies that operate under cooperation agreement with Chinese investors because we?ve never received the copies of the licenses,? he said. (godang)