Mining contracts won?t be extended unless renegotiation is concluded

Director General of Coal and Mineral R. Sukhyar said the government would not extend the mining contracts of mineral and coal miners unless they conclude the ongoing contract renegotiation with the government.

Sukhyar was quoted by Investor Daily on Tuesday as saying that the contract renegotiation is mandated by the 2009 Mining Law.

The government last week signed MoUs with 25 miners on the conclusion of the protracted contract renegotiation process. But giants such as PT Freeport Indonesia, PT Newmont Nusa Tenggara, and PT Vale Indonesia were not included in the list.

The paper said that to date there are a total of 83 mining companies holding the KK mining contracts and PKP2B coal contracts which have yet to reach agreement with the government on the six points of renegotiation.

?If (they) don?t agree (to the six points), then their contracts will not be extended,? Sukhyar said.

He said that the government hopes to conclude the contract renegotiation process before the term of the current administration ends. (*)