Southern Arc expects mining clearance

Southern Arc Minerals Inc expects the new land utilization regulations will remove restrictions to its mining activities in West Nusa Tenggara.

In December 2006 the Provincial Governor introduced the Perda which purported to restrict mining activity on Lombok Island. The Perda was enacted without the consent of the relevant Regency and Central governments. In order to address this, the Central Government passed the National Spatial Planning Law 26/2007 and amendment No. 4725 (the “Federal Law”), requiring, the Provincial Government, by November 2009, to reclassify the entire provincial territory into designated zones (e.g. mining, agriculture or tourism).

Pursuant to the Federal Law, the Central Government formed the National Spatial Planning Body (the “NSPB”) in order to develop provincial laws which conform to the Federal Law. As of November 30, 2009 the Company has been informed by officials within the Central and Provincial governments that: 

(1) The NSPB has concluded their deliberations and has scheduled an official signing ceremony to be held in Jakarta on December 10, 2009 to formally endorse the revisions in order for the Perda to conform with the Federal Law; and 

(2) The revised Perda will then be presented to the Provincial Legislative Body in Mataram for final approval and subsequent enactment into law.

"Once these new land utilization regulations are in effect, all prior restrictions to mining activities on Southern Arc properties will be immediately removed," Southern Arc said in a statement to Toronto Stock Exchange (TSX) Venture on Tuesday.

Southern Arc has currently assembled a portfolio of six projects on the islands of Java, Lombok and Sumbawa. Sumbawa Island hosts Newmont Mining's world-class Batu Hijau mine, which adjoins Southern Arc's Taliwang property immediately to its north.

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