Mining contract extension to be expedited

Large mining companies will be allowed to request for contract extension 10 years before its expiry, much sooner than the two-year requirement under the current regulation.

Secretary General of the Ministry of Energy and Mineral Resources Teguh Pamudji said on Friday that the government plans to revise Government Regulation No 33/2014 to allow large mining firms to request for contract extension much sooner to help accelerate investment in the sector.

?The approach is for high risk and largest investment (application for contract extension can be made) 10 years before expiry at the soonest, and two years at the latest,? he said as quoted by Bisnis Indonesia.

He said that mining firms such as PT Vale Indonesia Tbk, PT Freeport Indonesia, and PT Newmont Nusa Tenggara can take advantage of the planned new policy.

He added that the new regulation is expected to be issued this year. (*)