Victory West secures C. Sulawesi molybdenum permit conversion

Australian firm Victory West Moly Limited (VWM) is finalizing the conversion of its mining contract from Kontrak Pertambangan or KP (Mining Authoriziation) to Izin Usaha Pertambangan or IUP (Mining Permit) for the Malala Molybdenum project in Central Sulawesi.

?Several meetings have taken place in Jakarta and Sydney, with the signing of all documents finalised at a meeting in Jakarta on Tuesday 25th August by the local Bupati and Victory West Moly representatives,? the company said in statemnet on Monday.

The new Mining Law of 2009 passed early this year calls for the conversion of all types of mining contracts, including KP and Contract of Work, into IUP

In compliance with the new law, VWM and its KP partners have entered into a "Life of Mine" and nominee agreements, including for the establishmnent of a PMA company called PT Sulawesi Molybdenum Management to run the project. This series of agreements provide the legal rights to VWM to explore and exploit the Malala project, it said.

VWM has acquired five molybdenum leases in Toli-toli, Central Sulawesi, where previous exploration works had been carried out by Rio Tinto with expenditure of US$20.5 million. (denny)