Mining investors want central govt to sign contract: Purnomo

Thursday, February 21 2002 - 01:12 AM WIB

Mining investors want the central government to also sign their mining contracts to give a greater certainty to the cash-intensive mining project, according to Minister of Mineral Resources and Energy Purnomo Yusgiantoro.

Purnomo said that the government was seeking a solution to this demand since based on the new autonomy law, the central government has transferred mining authority to regional governments.

Reports, however, have said that many foreign mining investors have less confidence in regional governments. A recent report said that several mining investors have cancelled their investment plans worth around US$10 billion because they did not want to sign contract with regional governments.

Purnomo was speaking to reporters after a meeting with Vice President Hamzah Haz, who is in charge of designing a stimulus economic package to push the country economic growth. The mining sector is expected to contribute significantly in boosting the economy.(*)

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