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Amendment of six mining contracts brings US$20 million in revenue
The Energy and Mineral Resources Ministry amended six contracts of work (COWs) on minerals on Wednesday, bringing the total number of amended contracts to 28 since negotiations with miners began in 2009.
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Energy and Mineral Resources Ministry mineral and coal director general Bambang Gatot Ariyono (tribunnews.com/Fajar Pratama)
T
he Energy and Mineral Resources Ministry amended six contracts of work (CoWs) on minerals on Wednesday, bringing the total number of amended contracts to 28 since negotiations with miners began in 2009.
“The amendment of these six CoWs will bring additional state income of US$20 million per year,” the ministry’s mineral and coal director general, Bambang Gatot Ariyono, said on Wednesday.
The six CoW holders are PT Natarang Mining, PT Kalimantan Surya Kencana, PT Weda Bay Nickel, PT Mindoro Tiris Emas, PT Masmindo Dwi Area and PT Agincourt Resources.
Strategic issues addressed in the amendment include an increase in royalties and taxes – not including the corporate income tax – paid by miners in line with prevailing laws, a requirement for the companies to divest 51 percent of their stake after a 10-year period of production and the obligation to convert their old contracts into special mining permits (IUPKs).
The ministry initially planned to amend 34 CoWs following the issuance of the 2009 Mining Law, which proposes a shift from the decades-long contract-based system to a permit-based system to put the state in a favorable position.
However, in the process, the ministry terminated the contract of gold miner PT Tambang Mas Sable and converted the contracts of two gold and copper miners, PT Freeport Indonesia and PT Amman Mineral Nusa Tenggara, into IUPKs.
Hence, there are currently three miners left that have refused to amend their CoWs, namely PT Nusa Halmahera Mineral, PT Sumbawa Timur Mining and PT Kumamba Mining. (bbn)
