Seven mining firms ready to amend contracts

At least five coal miners and and two mineral producers have agreed to amend their contracts following series of renegotiation talks with the government, Bisnis Indonesia reported.

Director General of Coal and Mineral at the Energy and Mineral Resources Ministry Thamrin Sihite said that the seven companies were holders of PKP2B permits and KK permits.

?Although it is difficult to predict, I estimate there are at least five coal miners and two mineral firms who will be ready to amend their contracts at the end of the year,? he said.

If Thamrin?s prediction is correct, the number of miners which have been ready to amend their contracts has so far reached 19 companies, which comprise of 15 coal mining companies and four mineral producers.

Thamrin said last month as many as 12 companies comprising of 10 coal miners and two mineral companies had been ready to amend their contracts following their negotiation talks with the government.

Renegotiation with coal miners and mineral producers have taken place since early this year as part of the government?s plan to bring all existing mining policies in line with the new mining law.

The renegotiation covers six main issues, including the increase in royalty payments, the obligation to process mineral ores in Indonesia, the use of local goods and services, divestment, contract extensions and the size of mining areas. (*)