NTB demands authority to control PT Newmont

The provincial administration of West Nusa Tenggara has demanded the central government to delegate the authority to oversee the operation of PT Newmont Nusa Tenggara?s copper and gold mine in the province. The demand is now being hammered out by the province?s legislative council, Koran Tempo reported on Thursday.

"At present, the supervision of PT NNT does not involve the local government. As the consequence the provincial administration knew nothing about the royalty that should be paid by the mining company," I Gusti Komang Padang, the chairman of the council?s Commission C, said in Mataram on Wednesday.

Komang said the local government also considered the company?s payment for the use of the land is still too low.

According to Energy and Mineral Resource Minister?s decree issued in September 1992, PT NNT is required to pay Rp 50 pre hectare for general survey activities, Rp 200 per hectare for exploration, and Rp 500 per each hectare for mining operation.

He said that the local administration would formally asked to delegate the authority in supervising the company?s operation after the central government decided last year to revise the decree which regulated the non-tax payment from mining companies. Under the previous decree, Newmont was required to pay royalty of about four percent of the copper production.

At present, the provincial administration was not involved in monitoring production activities. "We are just like am observer. We were just informed about the level of the production," he added. (*)