Jero: 43 miners have concluded mining contract renegotiation

By Thomas R. Sembiring

Minister of Energy and Mineral Resources Jero Wacik said that of the total 107 mining companies which have been engaged in mining contract renegotiation process with the ministry, 43 have signed MoUs on the conclusion of the process.

Speaking at a hearing with the House of Representatives Commission VII on energy and mining on Monday, Jero said that the ministry hoped to be able to conclude the renegotiation process with the remaining 64 mining firms soon.

Director General of Mineral and Coal R. Sukhyar said separately that he expected the MoUs with the remaining 64 miners to be signed in September of this year before the current government ends its term in October.

The government has been engaged for the past couple of years in renegotiating the contracts of mining firms including the holders of the KK mining contracts and PKP2B coal contracts of work to meet the terms as mandated by the 2009 Mining Law including higher royalty, reduction of concession size, use of domestic goods and services, as well as develop domestic smelter and divestment obligation for foreign-controlled miners, all of which are aimed to allow the country to obtain greater value from the mining commodities.

Once the MoUs have signed, the miners are expected to enter the next stage of contract amendment process. Among of the KK holders which have signed the MoU include giants PT Freeport Indonesia and PT Vale Indonesia. The government hopes to be able to sign MoU with giant PT Newmont Nusa Tenggara. Meanwhile, among of the PKP2B holders which have signed the MoU include PT Trubaindo Coal Mining, PT Astaka Dodol, and PT Jorong Barutama Greston.

Editing by Reiner Simanjuntak