Saturday, November 14, 2009

Locals want 50% of INCO's nickel concession

South Sulawesi governor Syahrul Yasin Limpo said PT International Nickel Indonesia (Inco) Tbk has to cut its concession area by 50%. 
"We have started to talk with INCO to rationalize 50% of its 118,000 hectares concession," Syahrul said this week. 
"Because the company has only developed 9,000 hectares in 30 years of operation, while so many investors have expressed their interest to open nickel mine in the same area," Syahrul argued.
Will it hurt investment climate?
"I don't think so. If INCO keeps controlling such a huge concession, opportunities for competition will be limited, while so many investors want to develop the area," Syahrul said.
Well, this is interesting. INCO got the concession from central government. If local administrations manage to get what they wanted, probably Papua provincial administration will follow: asking Freeport Indonesia to give out 50% of its gold and copper concession. How about East Kalimantan on Kaltim Prima Coal or South Kalimantan on Adaro Indonesia? Believe me, lots of investors want to get even 10% of their concessions. BUT...

Labels: ,



Post a Comment

<< Home