Indonesia to Renegotiate All Mine Deals, Include Divestment

By webadmin on 08:06 pm Mar 09, 2012
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Indonesia’s new rule requiring foreign firms to divest majority ownership of mines applies to every miner and will form part of a planned renegotiation of all existing contracts, senior government officials said on Friday. 

Firms with existing “Contract of Work” agreements signed before the new rule have mostly said the regulation did not apply to them and would only apply to firms holding newer “mining business licenses”, but government officials deny this. 

“There is a clause in the contract that if there is something that needs renegotiation, that can be done. So, why can’t we do it?” deputy mining minister Widjajono Partowidagdo told Reuters, adding renegotiations will include divestments as well as royalties. 

Reuters