May 23, 2011

Presidential decree to benefit BRMS

The government has issued the Presidential Decree No. 28/2011 that allows conditional underground mining in a protected forest area on May 19 2011.
CEO Kenneth Farrell at PT Bumi Resources Minerals Tbk (BRMS), the non-coal subsidiary of Indonesia's largest coal miner PT Bumi Resources Tbk (BUMI), said the long- waited the Presidential Decree issuance is truly great news to zinc concession operated by the 80% owned subsidiary, PT Dairi Prima Minerals, in North Sumatera. 
"Our team is now in the process of submitting the formal request to ultimately obtain the borrow and use permit to conduct the underground mining activities in the Dairi’s concession,” he said in an official statement obtained by Insider Stories today.
He said the decree which supports the conditional underground mining in the protected forest area is a huge improvement in the Indonesia’s mining industry. It will allow a lot of concession owners to monetize their mining reserves in the near future. This also means more added value royalties for the country (Indonesia). 
"We remain optimistic that the permit for the underground mining in Dairi will be in place soon. This will lead to Dairi commencing its first production early in 2013 subject to the availability of such permit and all other conditions being satisfied.” 
The decree will be followed up by first, the principal agreement by the Ministry of Forestry (up to 2 years and can be extended) and the borrow and use permit by the Ministry of Forestry (up to 20 years and can be
extended). Bumi Minerals today slightly decreased 1.43% to IDR690, sending a market capitalization of IDR17.64 trillion.

Disclosure: No position at the stock mentioned above.

Print This Article

No comments: