SKH Nuansa Pos-Rabu, 7 August 2002

SKH Nuansa Pos-Rabu, 7 August 2002

Translated from Bahasa Indonesian (versi Bahasa Indonesia berikut ini)

Funding Difficulties of PT Inco Soroako Set Back Exploitation
Mangun: If Not Capable, Back Out of Central Sulawesi

Makassar, Nuansa Pos

The company PT Inco Soroako that up until now has been exploiting minerals in South, Central and Southeast Sulawesi is facing funding difficulties to pay for mining activities in accordance with agreements made in their Contract of Work. The situation in Indonesia - lack of political stability, assurance of security and law enforcement - has very much influenced investors.

As a result, international financial institutions have been hesitant to provide capital for loans to PT Inco. Until now, there is yet to be a Bank or international financial institution providing capital loans to us. “This makes us unable to conduct exploitation in Sulawesi,” stated Chief Executive Officer (CEO) PT Inco Edward Hodkin at a PT Inco meeting with the Provincial government of South Sulawesi, Central Sulawesi and Southeast Sulawesi at Hotel Sedona Makassar.

The Director General of Geology and Mineral Resources Wimpie S Tjetjep attended this meeting with South Governor Zainal Basri Palaguna, Central Sulawesi Provincial Secretary Drs Samijono and Southeast Provincial Secretary Drs H Yokoyama Sinapoy.

South Sulawesi Governor Zainal Basri Palaguna was asked about the issue of local complakints against PT Inco. He stated that all problems must be resolved by deliberations, as well as considering the relationship between the state of Indonesia and Canada. Other than the local government, the central government is also involved in this problem., as for example the transmigrant relocation in Central Sulawesi.

Separately, the Head of Commission B of the Central Sulawesi Local House of Representatives Yus Mangun SE clarified that, in accordance with the contract of work, PT Inco must continue their exploitation activities in the Central Sulawesi region between 2003-2005. If they can't then they must back out. “There are still many foreign investors that want to invest their capital in Central Sulawesi,” stated Mangun, a veteran Central Sulawesi politician.

This matter was regarded as important because, up until now, approximately 36 thousand hectares of 'sleeping land' in Central Sulawesi is waiting to be exploited. Also approximately 500 households from transmigrants located in the Bahudopi Block are waiting to be relocated to a new location. Meanwhile, 200 households have already moved to the new location, their security is of much concern. PT Inco must be responsible for them, the poor community,” stated Yus with a tone of concern.