JAKARTA (TheInsiderStories) – The Minister of Mineral and Energy Resources has signed contract amendments with six mining firms holding so-called ‘Contract of Work’, in order to align with the Mining Law and applicable regulations.
The six companies are comprising of one company which holds the fourth-generation of Contract of Work, three companies holding the sixth-generation Contract of Work and two companies hold the seventh-generation Contract of Work.
The six companies are (1) PT Natarang Mining, located in Lampung, (2) PT Kalimantan Surya Kencana (Central Kalimantan), (3) nickel miner PT Weda Bay Nickel in North Maluku, (4) PT Mindoro Tiris Emas in South Sumatera, (5) PT Masmindo Dwi Area in South Sulawesi, and (6) PT Agincourt Resources in North Sumatera.
The combined revenues to be received by the government from the six Contract of Works amendments reach US$20 million.
Of the 32 articles in the Contract of Work, the miners agreed to amend 20 articles, which cover a number of issues, including the size of mining site area, government revenues, and construction of smelter.
The amendments were implemented by revising, adding and deleting some articles, in order to comply with the mining law.
The amendment was the latest contract amendment. Most miners have signed the contract amendments, while few others have yet to reach an agreement.
On Wednesday, the miners signed the contract amendment, witnessed by the Minister of Energy and Mineral Resources Ignasius Jonan.
The negotiation of the contract amendments has been ongoing since 2010 and encompasses 31 CoWs and 68 coal contract of works (PKP2B) holders.
Last year, royalties from the mining sector reached Rp40 trillion. It is projected that the amendment will yield an additional 1 per cent revenues per annum for the government.