Ministry official concerned about governor's efforts to review Inco COW
Monday, September 11 2000 - 05:00 AM WIB
Director general of general mining at the Ministry of Energy and Mineral Resources Surna Tjahja Djajadiningrat expressed concerns on Monday over the efforts by there governors in Sulawesi to review the mining contract of work (COW) awarded to Canadian nickel miner PT Inco.
Surna said the effort was driven by "the auphoria to impose moratorium on mining activities" in the country which could discourage foreign investors from entering the country.
He called on the governors to first well study the meaning of COWs and their issuance process before seeking to review Inco's COW.
"If (they want) to review the contracts, all parties including the governments and Inco, first need to sit together to talk about it," Surna told Petromindo.Com.
On Friday, South Sulawesi governor HZB Palaguna, Central Sulawesi governor HB Paliudju and Southeast Sulawesi governor La Ode Kaimoeddin said they would soon meet with Vice President Megawati Soekarnoputri to present a proposal to review the government's COW with Inco.
"We will soon meet with the Vice President to discuss the matter. We will ask the government to review and revise the COW with PT Inco because it is not anymore in line with current development," Palaguna told reporters in the Southeast Sulawesi capital of Kendari after the regional development cooperation agreement with the other governors.
Palaguna said currently Inco's contribution to the three provinces was very small, compared to the environmental destruction the company had caused.
He said Inco mining concessions cover areas of around 90,000 hectares in South Sulawesi, 68,000 hectares in southeast Sulawesi, and 36,000 hectares in Central Sulawesi. And the company only paid Rp776 million (US$1=Rp8,400), Rp420 million and Rp284 million respectively to Southeast and Central Sulawesi administrators.
Commenting on the report, Inco's vice president for government affairs and public and shareholders relations Andre Daenuwy said on Monday Inco was determined to consistently follow the corridor of COW.
"How ever, Inco is not an incentives company. Inco is ready to meet the governors especially regarding community development," Daenuwy told Petromindo. (godang/alex)