Pani gold project suspended amid partnership dispute
Saturday, February 8 2014 - 03:25 AM WIB
The paper quoted CEO and Managing Director of One Asia Resources, Stephen Walters, as saying that his company has already been engaged in partnership with Dharma Tani, which holds the IUP mining permit for the 100 ha gold concession, for four years, giving One Asia a 49 percent interest in the project.
However, the project has now been suspended amid breach of agreement after Dharma Tani unilaterally cut off the partnership with One Asia, and turned to form a new one with IDX-listed mining firm PT J Resources Asia Pasifik Tbk on December 24, 2013.
Walters regretted the move by Dharma Tani as One Asia has already invested over US$10 million in the project, which has entered feasibility study stage. The Pani gold concession is estimated to contain reserves of 1.9 million ounces of gold.
Walters said that the problem started when Dharma Tani requested for Rp 10 billion funds from One Asia to help finance the development of the cooperatives?s businesses. One Asia agreed, but would provide the funds through installment, which was rejected by Dharma Tani, which then turned to J Resources Asia Pasifik.
Meanwhile, Boyke Abidin, Director for Government Relation at One Asia, said that local court is scheduled to hold a meeting on February 12 with both parties to help mediate and settle the dispute. (*)