Mining bill likely to be passed next month

The hopes of mining firms for major changes to the draft mining law appear to have been dashed after the House of Representatives decided to keep a number of controversial chapter unchanged.

Simon F Sembiring, the Energy and Mineral Resources Ministry's director general of geothermal energy, minerals and coal, said Thursday in Jakarta that almost 90 percent of the provisions in the mining bill had been approved, including those relating to licensing procedures, which have been strongly opposed by the country's mining firms.

"We are now in the process of discussing additional provisions for the transition period for existing mining license holders to bring themselves into line with the proposed law," he told The Jakarta Post on the sidelines of a meeting of the House working committee charged with deliberating the bill.

Provided there were no further hitches, he said he hoped the House would pass the bill into law in March as scheduled.

Mining firms have been up in arms against the bill's licensing provisions, which envisage the delegation of licensing powers from the ministry to regional administrations, and want to see the government retaining the existing contract of work mechanism.

Mining firms argue that the current contractual arrangements, which cover all matters concerning operating requirements, taxes, royalties and the sale of stakes to local interests, offer greater legal certainty for mining companies. (*)