Kangaroo; Update to shareholders on Indonesian investment climate
Thursday, February 13 2014 - 09:19 AM WIB
The Company currently has interests in 14 mining concessions in Indonesia.
The Company already holds 99% equity in 9 of these mining concessions and these equity holdings will ultimately need to be reduced progressively after the 5th year of production (maximum 80% equity) to after the 10th year of production (maximum 49% equity).
The impact of this progressive divestment obligation will need to be factored into the Company?s long term plans for the development of these 9 mining concessions.
The Company also has plans to take direct equity in the 5 other mining concessions and however, based on further legal advice on this matter the Company has now concluded that the plan to take a direct equity holding in the 5 mining concessions will be limited due to the requirements of the new regulations.
The 5 mining concessions for which we currently do not yet hold a direct equity interest in and are impacted, are as follows:
Mining Concession
|
Current Commercial Interest held |
Maximum Permitted foreign equity |
Difference |
Graha Panca Karsa (GPK) |
85% |
49% |
36% |
Cahaya Alam (CA) |
99% |
49% |
50% |
Bara Sejati (BS) |
99% |
49% |
50% |
Apira Utama (AU) |
99% |
49% |
50% |
Tiwa Abadi (TA) |
99% |
75% |
24% |