ID :
28431
Tue, 11/04/2008 - 21:21
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http://m.oananews.org//node/28431
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GOVT EXPECTING TO SIGN CONTRACT WITH RIO TINTO
Jakarta, Nov 4 (ANTARA) - The Indonesian government expects to sign a work contract with PT Rio Tinto Indonesia for the mining of nickel in Lasamphala on the border between Central and Southeast Sulawesi.
The signing is expected to be done before the new law on minerals and coal is put into effect, the director general of minerals, coal and geothermal, Bambang Setiawan, said here on Tuesday.
He said the government was optimistic it could settle the problem of overlapping concession rights faced by Rio Tinto.
"If it is possible the contract will be signed before the implementation of the new law," he said.
He said the Morowali district, the Central Sulawesi, the Konawe district, the Southeast Sulawesi administrations and Rio Tinto as well as the ministry of home affairs had already found a sign of solution for the problem.
"I will meet with them soon," he said.
The House Commission VII had called on the government to immediately settle the problem between Rio Tinto and local businessmen.
The commission chairman, Airlangga Hartarto, said the settlement of the problem would have a positive impact on the country's investment atmosphere particularly with regard to legal certainty and the country's investment destination status.
Commission deputy chairman Sutan Bhatoegana shared his view saying if the problem was not immediately solved the country's reputation before investors could be damaged.
He said the settlement of the Rio Tinto problem as well as problems in other investment mining projects would have a positive impact on local economies.
Rio Tinto plans to conduct nickel mining in Lasamphala which is located in the district of Morowali in Central Sulawesi and the district of Konawe in Southeast Sulawesi.
Since 1999 Rio Tinto has secured a principal concession permit for mining in Lasamphala from the central government but the local administrations later issued a license for mining in the same location to other companies including Group Bintang Delapan.
Rio Tinto has said it has prepared Rp18 trillion for the development of its mining project.
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The signing is expected to be done before the new law on minerals and coal is put into effect, the director general of minerals, coal and geothermal, Bambang Setiawan, said here on Tuesday.
He said the government was optimistic it could settle the problem of overlapping concession rights faced by Rio Tinto.
"If it is possible the contract will be signed before the implementation of the new law," he said.
He said the Morowali district, the Central Sulawesi, the Konawe district, the Southeast Sulawesi administrations and Rio Tinto as well as the ministry of home affairs had already found a sign of solution for the problem.
"I will meet with them soon," he said.
The House Commission VII had called on the government to immediately settle the problem between Rio Tinto and local businessmen.
The commission chairman, Airlangga Hartarto, said the settlement of the problem would have a positive impact on the country's investment atmosphere particularly with regard to legal certainty and the country's investment destination status.
Commission deputy chairman Sutan Bhatoegana shared his view saying if the problem was not immediately solved the country's reputation before investors could be damaged.
He said the settlement of the Rio Tinto problem as well as problems in other investment mining projects would have a positive impact on local economies.
Rio Tinto plans to conduct nickel mining in Lasamphala which is located in the district of Morowali in Central Sulawesi and the district of Konawe in Southeast Sulawesi.
Since 1999 Rio Tinto has secured a principal concession permit for mining in Lasamphala from the central government but the local administrations later issued a license for mining in the same location to other companies including Group Bintang Delapan.
Rio Tinto has said it has prepared Rp18 trillion for the development of its mining project.
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