MELBOURNE: Australian miners are playing down the impact of a new law in Indonesia limiting foreign ownership in mines to no more than 49%, even after a senior Indonesian official said the law would apply to all foreign miners.
The government has said it wanted Indonesians to have greater ownership of resources in the country, which is the world's top exporter of thermal coal and tin and has abundant reserves of copper and gold.
Those holding what are called “contracts of work” or “coal contracts of work”, such as Newcrest Mining, believe those agreements will remain intact until expiry, and reckon so-called IUP mining concessions are the target of the new law.
Newcrest, the world's third-largest gold miner, said yesterday its 82.5% stake in the Gosowong mine in Indonesia would not be affected by the rule, at least until its existing contract ran out. Reuters