Very complicated have questionsOk SA had until the end of February 2010 to acquire 50% of the 1% of the Indotan 1% net smelter return warranty for $ 500,000.00. I guess SA haven't done that because they took over the rights from Indotan and their JV partners. We paid cash and stock for this recently.
Did you know the the new law requires foreign companies to diverse 20% of company shares to local partners? Here is the link if you want to read that.
https://www.thejakartapost.com/news/2009/06/30/foreign-mining-firms-required-divest-shares.html
SA made this statement in their paper work:
"Upon enactment of the revised regulation the West Lombok Project will lie within areas zoned for mining activities. It’s the Company’s understanding that retro-active permitting and IUP processing will immediately follow the enactment of the revised provincial land utilization regulation."
I guess that was where Indotan came in recently. SA makes reference to clause 172 of the 04/2009 new mining law. Have you read this document. Here is the link if you wish to.
https://www.castleasia.com/Opinion/IND-ENG-UU%204-2009%20Pertambangan%20Mineral%20Batubara%20%28ABNR%29.pdf
This is clause 172
Article clause 172
Applications for contracts of works and coal
contracts of works that have been filed with the
Minister within at most 1 (one) year prior to the
effectiveness of this Law and already obtain
principle approvals or preliminary survey permits
shall remain upheld, and their permits therefor may
be processed without bids under this Law.
What they don't tell you is they have given local governments the power to make the decisions. Not sure if this is good or bad.
The government can declair State reserve areas and can control mining through expansion through that.
Part Four
State Reserve Areas
Article 27
In the interest of national strategy, the
Government upon the consent of the House
of Representatives of the Republic of
Indonesia, and with due regard to regional
aspirations, shall determine State Reserve
Areas as areas that are reserved for certain
commodities and conservation areas to keep
a balance between ecosystem and the
environment
Elucidation of Article 27 (1):
Determination of State Reserve Areas in the national
interest is intended to push national economic growth,
national strategic energy and industrial resilience as well
as to improve national competitiveness in facing global
challenges.
“Certain commodities” shall include, inter alia, copper,
lead, gold, iron, nickel, and bauxite as well as coal.
What is not so good about the new law:
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