Sumbawa regency upset over late distribution of gold royalties

The Sumbawa regency has expressed concerns over the delay in the transfer of the royalties paid by PT Newmont Nusa Tenggara (NTT) to the West Nusa Tenggara (NTB) province, saying that the delay would affect its planning because the money had been allocated for development purposes, Bali Post reported on Tuesday.

A Rachmat Alamudi, the chairman of the regency's legislative council, asked the provincial administration in Mataram to transfer the money because the funds were very much needed to support the regency's insufficient budget.

"We don't know why the provincial administration keep the money while the local administration is in shortage of funds to finance its development," he said a meeting with the provincial legislative council.

PT Newmont Nusa Tenggara (NTT), which started the commercial production of its gold mine in Batuhijau, West Nusatenggara (NTB) province early this year, has paid a total of Rp 18.79 billion (1US$=Rp 9,500) to the local administration.

The amount paid to the NTB administration are about 80 percent of Rp 23.79 billion in royalties paid by the United States-based mine operator to the government since the company started its production in the province.

The Sumbawa regency, which hosts the gold mine, received Rp 6.01 billion or about 32 percent of the royalties paid to the local government. The provincial administration received Rp 3 billion or about 16 percent while other six regencies in the province received about Rp 1 billion respectively or 5.3 percent each.

The company said that it had paid royalties of about Rp 3.34 billion for its initial production in late 1999 and Rp 20.14 billion for the gold production during the January-April period. (*)