S. Sulawesi govt seeking to cut 50 percent of Inco?s concession

The South Sulawesi provincial government is in talk with Canada?s nickel producer PT International Nickel Indonesia (Inco) on the government?s intention to cut 50 percent of the company?s 118,000 ha mining concession to allow other investors to operate the idle land, Investor Daily reported Saturday.

South Sulawesi Governor Syahrul Yasin Limpo said in Makassar that throughout 30 years of operation, Inco has only developed 9,000 ha, leaving the remainder of the concession idle.

According to Syahrul Yamin many investors had expressed interest in developing the idle parts of the concession.

Currently, South Sulawesi government and Inco sat together to solve the problem. South Sulawesi government asked Inco to count extent of the land that could be operated. Inco should decide the extent of the concession and its capability of exploring, he said. The land that Inco did not operate could be offered to investors, he added.

?The efforts will not hurt investment climate in South Sulawesi. If the land remains under the control of Inco, this will close the door for business competition in South Sulawesi,? he said. (*)