Update 1: Coal and mineral firms driven to start production by 2007: Official

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Ministry of Energy and Mineral Resources said 11 firms operating in 10 different coal and mineral mining areas across Indonesia are targeted to start production in 2007 at the earliest or in 2010 at the latest to help propel the country?s economy.

The 11 firms operating in coal and mineral mining areas are PT Meares Soputan Mining in North Sulawesi, PT Tambang Tondano Nusajaya, also in North Sulawesi, PT Dairi Prima Mineral in North Sumatra, PT Natarang Mining in Lampung, PT Newmont Horas Nauli in North Sumatra, PT Newmont Nusa Tenggara (NNT) in Sumbawa, Weda Bay in North Maluku, PT Inco in Central Sulawesi, PT Ensbury Kalteng Mining in Central Kalimantan, PT Mindoro Tiris Emas in South Sumatra and PT BHP-Lahai Coal in East Kalimantan/ Central Kalimantan.

?Next year, the companies are expected to be able to engage in exploitation activities and they are encouraged to start production soon, with estimated 2007 at the earliest and 2010 at the latest. This is important so that an investment that reaches US$3 billion can soon be realized and generate the economy,? said MS Marpaung, Director of Coal and Mineral Business Development Division at the Energy and Mineral Resources, in Jakarta Friday.

He said that most of the 11 mining areas have gold, copper, silver and nickel reserves.

According to Marpaung, efforts should be made to drive mining sector to soon start production at a time when other industries have yet to start to grow. Since the economic crisis that hit Indonesia in 1997, there has yet to be new coal and mineral mining opened.

Marpaung said that different perceptions about mining operation between the Energy and Mineral Resources Ministry and the Ministry of Forestry has hampered the expected production of coal and mineral companies.

?Actually, the companies have already pocketed the mining license but cannot start operation because they face difficulty in getting a license on land use in the forest area (from the Forestry Ministry),? he said.

Marpaung underlined the importance of understanding the mining issue among related ministries so as to ensure certainty in mining sector. (godang)

No	Company	Location	Product	Status	Reserves	Investment (million US$)	Production Plan
1	PT Meares Soputan Mining	North Sulawesi	Gold	Construction	7.9 million ton of ore; 2.9 gr/ton Au; 5.0 gr/ton Ag	29.03	160,000 oz Au/year
2	PT Tambang Tondano Nusajaya	North Sulawesi	Gold	FS	2.48 million of ore; 4.43 gr/ton Au; 16.0 gr/ton Ag	11.19	56,000 oz Au/year
3	PT Dairi Prima Mineral	North Sumatra	Lead & Zn	Construction	6.6 million ton@14.6% Zn; 8.8% Pb; 11 gr/ton Ag equal to 21.1% Zn	94.77	Zn 220,000 ton/year; Pb 110,000 ton/year
4	PT Newmont Horas Nauli (Martabe Block)	North Sumatra	Gold	FS	118.8 million ton of ore; Au grade 1.39 gr/ton; Au ounces 5.3; Ag ounces 54.8	38.47	4 MT/year of Processing plant; 270,000 oz/year Au; 2 million oz/year Ag
5	PT Newmont Nusa Tenggara (Elang Block + Rinti)	Sumbawa	Cooper, Gold, Silver	Exploration	1.89 million ton	125	--
6	PT Weda Bay	North Maluku	Nickel	Exploration	Hypothetic: 63.7 million ton (Ni 1.35% & Co 0.09 %); Measured 18 million ton (Ni1.22% & Co 0.05-0.12%)	20.1	--
7	PT Natarang Mining	Lampung	Gold	FS	400,154 ton Au, grade 8.24 gr/ton; 150,000 oz Au	22.6	40,000 oz/year Au; 500,000 oz/year Ag
8	PT Inco	Bahudopi, C. Sulawesi	Nickel	Exploration	Waiting for final exploration result	0>2 Billion	--
9	PT Ensbury Kalteng Mining	C. Kalimantan	Gold	Exploration	437,376 ton ore; consist of Sireis 235,039 ton, grade 2.02 gr/ton Au; Seribu 202,338 ton,grade 1.5 gr/ton Au	2.15	--
10	PT Mindoro Tiris Emas	South Sumatra	Gold	FS	5.09 million ton; grade 0.42 gr/ton Au	3.1	--
11	PT BHP-Lahai Coal	E. Kalimantan/C. Kalimantan	Coal	Construction	3.6 million ton; Price US$65/ton	39	720,000 ton/year