Miners set to sign contract amendment soon: Official

Petromindo|Thomas

As many as 15 coal mining firms holding the so-called coal contract of work (better known as PKP2B) and mineral mining firms holding mining contract of work (or KK) are set to sign contract amendment with the government on April 12.

Bambang Susigit, Director of Mineral Development and Management at the Ministry of Energy and Mineral Resources, said on Friday that negotiation process with the 28 mining firms over six main issues have been completed, and in fact, the miners have been ready to sign the contract amendment since late last year.

?The plan is (to sign contract amendment on) April 12. There are 15 PKP2B coal miners and 13 KK miners,? he said.

There are currently 34 KK miners and 74 PKP2B coal miners. Of the 34 KK miners, nine have signed contract amendment. Gold and copper giant PT Amman Mineral Nusa Tenggara has been excluded from the list as the company has agreed to convert its KK into special mining business license (or IUPK).

Of the total 74 PKP2B coal miners. 22 have signed contract amendment, while four have been terminated, and another in the process of being terminated.

The government has been struggling to push miners to amend their contracts to comply with terms set in the 2009 Mining Law. Of the six main issues of negotiation between miners and the government, two are the most difficult to agree: higher revenue contribution to the state and mandatory divestment of mining firms controlled by foreign investors. Negotiation over the two issues involved the Ministry of Finance. (*)