Three mining giants to boost investment in 2005
Wednesday, December 29 2004 - 02:57 AM WIB
Three global mining giants including BHP Billiton, Rio Tinto, and Newmont Corp. will boost investment spending in 2005 to finance their new mining projects in this country, Investor Daily Newspaper reported on Wednesday.
Noke Kiroyan, an executive of the Indonesian Mining Association (IMA) said in Jakarat on Tuesday that the three companies had decided to open new mining projects beginning next year to take the advantage of the government's strong commitment to provide more conducive investment climate in the mining sector.
Kiroyan, who is also an executive of Rio Tinto, said that the government's commitment to amend the mining law and to cope with the existing taxation problem had encouraged many mining companies to start or to resume their new mining projects.
Rio Tinto, the former major shareholder of East Kaliamantan-based coal producer PT Kaltim Prima Coal, has decided to begin its new mining projects next year. But Kiroyan was reluctant to unveil the value of the investment to be made by Rio Tinto, one of the shareholders of PT Freeport Indonesia.
Newmont, which operates in Indonesia through PT Newmont Minahasa Raya and PT Newmont Nusa Tenggara, will also increase its investment to finance new mining projects.
Like Newmont, BHP Billiton will also begin its new mining projects in 2005, including the Gag nickel mine near Maluku island which will be operated by PT Gag Nickel. BHP Billiton has 75 percent stake in Gag Nickel, which is also partly owned by PT Aneka Tambang. (*)