Minister meets top miners for contract amendment

Minister of Energy and Mineral Resources Ignasius Jonan met on Friday with the country?s large mining companies to push for the long-delayed mining contract amendment, Kontan reported on Saturday.

The minister wants the miners to complete the mining contract amendment this year, said Special Staff for Communications to the minister, Hadi M. Djuraid.

?The minister reminded the miners for the mining contract amendment (process) to be accelerated,? he said.

The mining contract amendment is mandated by the 2009 Mining Law to allow the country obtains greater benefit including royalty from its key mining commodities. There are six main points of the mining contract amendment including requirement to develop domestic smelter, reduction in concession acreage, use of local goods and services, tax and royalty, and requirement for foreign-owned mining firms to divest up to 51 percent stake to Indonesian investors.

Of the total 72 coal mining firms holding the coal contracts of work (PKP2B), only 37 have amended their contracts. Meanwhile, of the total 34 mineral mining companies holding mining contracts of work (COW), 21 have already amended their contracts. Among of the mining firms which have yet to amend the contract is gold and copper giant PT Freeport Indonesia, which is currently engaged in lengthy negotiations with the government over the fate of its future operations in Papua Province. (*)