Vale?s ex-concessions to be distributed to Antam, local governments

The Ministry of Energy and Mineral Resources has decided to distribute part of the former concessions of IDX-listed nickel giant PT Vale Indonesia Tbk in Sulawesi to IDX-listed mining firm PT Aneka Tambang Tbk and local governments, Kontan reported on Monday.

Director General of Mineral and Coal R. Sukhyar was quoted as saying that the Vale former concessions would be divided into eight blocks. The government would assign special IUP mining business permit to each of the blocks. He added that Antam and the local governments will decide on how to distribute the blocks.

PT Vale last year returned more than 72,000 ha of its concessions scattered in four regencies in South Sulawesi, Central Sulawesi, and Southeast Sulawesi provinces as part of an obligation set in its newly revised mining contract, thus reducing the firm?s concessions from about 190,500 ha to around 118,000 ha.

Antam Corporate Secretary Tri Hartono told the paper the state-controlled company is ready to develop the former concessions of Vale as long as they?re economically feasible, either on its own or in partnership with local government-owned companies.

Gunawan Palaguna, Head of the mining office in South Sulawesi, said that companies owned by the provincial and regency administrations are also ready to develop the concessions.

Sukhyar, however, said that only about 30,000 ha of the concessions will be allowed for development as the remainders are located in protected or conservation forest areas. The concessions are scattered in four regencies including Luwu Timur, Morowali, Konawe Utara, and Kolaka Utara. (*)