House to pass mining bill

The Jakarta Post ,  Jakarta   |  Tue, 12/16/2008 11:37 AM  |  Business

The House of Representatives is set to pass the mining bill into law during its plenary meeting Tuesday after three years of controversial discussion of the bill.

During last week's discussion, 10 factions represented in the House's Commission VIII on energy affairs have agreed to all articles in the bill, which will replace the 1967 law on mining.

Yasin Kara, a member of the special committee on the bill, said Tuesday both the House and the government would reach a final agreement on articles during the plenary.

All mining companies with current government contracts, he added, would be expected to comply with the law within one year of its passage.

"All companies must also pay 10 percent of dividends from net profits and work within the limits set out in the new contracting guidelines," said the member of the National Mandate Party (PAN) to Antara news agency.

Under the new law, he said, companies working under principal agreements from the energy ministry, prior to the law's passage, could still directly obtain special mining permission without going through the tender process. (ewd)
 

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