Ministry denies rumors of failed Weda Bay contract amendment
Tuesday, February 5 2013 - 12:36 AM WIB
Recently reported to have reached significant progress with the on going amendment of PT Weda Bay Nickel's contract, the Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources Thamrin Sihite denied rumors stating that the contract amendment effort has failed, as stated by a number of media.
"The rumors are not true. We are currently in the effort of evaluating all mining contracts to change them into a Clean and Clear IUP. What's real is if Weda Bay's KK contract period ended, we will have the scheme changed into IUP, in accordance with GR 24/2012," he said to Petromindo.com, confirming that Weda Bay will need to have its contract amended according to the law and changed into a Clean and Clear IUP.
He however did not provide additional details.
As stated within the ministry's website, Weda Bay has agreed to construct hydro-metallurgy plant as a greenfield project in both Central and East Halmahera of Maluku Utara, one of the outcomes of the government's contract amendment effort signed between the ministry of energy and mineral resources and the company on February 4th.
Divestment obligation and royalty, nevertheless, will need to be further discussed.
Editing by Er Audy Zandri