MEMR: 33 mining firms to sign amended contracts next month
Thursday, September 10 2015 - 01:07 AM WIB
The Ministry of Energy and Mineral Resources (MEMR) hopes 33 mineral mining companies holding the mining contracts of work (or better known as KK) to finally sign new amended contracts in October.
?The hope is (for the KK miners to sign the amended contracts) in October,? said Syamsu Daliend, Head of Supervision of Mineral Mining Operation and Production at the ministry on Wednesday.
He said that out of the 33 KK mining firms, 24 have signed MoU agreeing on the six main points of contract renegotiation with the government. Of the 24, only IDX-listed nickel mining firm PT Vale Indonesia Tbk which has amended its mining contract.
The government has been renegotiating for the past of couple of years with miners to amend their mining contracts to comply with the stipulations in the 2009 Mining Law. The main point of changes in the contract as proposed by the government include the reduction of mining concession, conversion of contract from KK to IUP mining business license, the use of local content, downstream obligation, higher royalty, and obligation for foreign miners to divest up to 51 percent shares to local investors. The last three are seen as the most difficult issues to be agreed by miners and the government particularly amid the current downturn in the global commodity market.
Editing by Reiner Simanjuntak