Indonesia erupts in mine ownership scandals

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Already suffering from poor doing business and political stability perceptions, Indonesia is now embroiled in numerous disputes over mining rights that allegedly favour entrenched businesses.

In the latest incident, Australia’s Intrepid Mines has become locked in a battle to retain 80 per cent of the $5-billion Tujuh Bukit copper and gold project in Indonesia’s East Java after its former partner sold off the stake to a local tycoon, Edwin Soeryadjaya.

Mineral deposits at the site are estimated to be 19 billion pounds of copper and 30 million ounces of gold.

In another case, UK-based Churchhill mining is suing the Indonesian government for $1.05 billion plus interest, alleging that the license for the East Kutai coal site was unfairly revoked. The mine is estimated to carry 2.8 billion metric tonnes of coal.

In an ostensibly politically connected case, Bumi Plc lost rights over a project to the powerful Bakrie family, which Aburizal Bakrie belongs to, a possible presidential candidate in the 2014 Indonesian general elections.

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Reading Time: 1 minute

Already suffering from poor doing business and political stability perceptions, Indonesia is now embroiled in numerous disputes over mining rights that allegedly favour entrenched businesses.

Reading Time: 1 minute

Already suffering from poor doing business and political stability perceptions, Indonesia is now embroiled in numerous disputes over mining rights that allegedly favour entrenched businesses.

In the latest incident, Australia’s Intrepid Mines has become locked in a battle to retain 80 per cent of the $5-billion Tujuh Bukit copper and gold project in Indonesia’s East Java after its former partner sold off the stake to a local tycoon, Edwin Soeryadjaya.

Mineral deposits at the site are estimated to be 19 billion pounds of copper and 30 million ounces of gold.

In another case, UK-based Churchhill mining is suing the Indonesian government for $1.05 billion plus interest, alleging that the license for the East Kutai coal site was unfairly revoked. The mine is estimated to carry 2.8 billion metric tonnes of coal.

In an ostensibly politically connected case, Bumi Plc lost rights over a project to the powerful Bakrie family, which Aburizal Bakrie belongs to, a possible presidential candidate in the 2014 Indonesian general elections.

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