Here is it!!!SYDNEY, Indonesia Today - Indo Mines Ltd has been...

Here is it!!!

SYDNEY, Indonesia Today - Indo Mines Ltd has been confirmed that the newly-enacted Government Regulation No. 24/2012 have no direct application on PT Jogja Magasa Iron (JMI) as it is a holder of Contract of Work (CoW), not Mining Business License (IUP).

“For companies holding Contracts of Work, such as JMI, there are provisions within the 2009 Mining Law which contemplate the Indonesian Government entering into negotiations with the CoW holders with a view to making amendments to those contracts to align them with the new mining law regime applicable to IUP holders,

“Specifically in relation to the divestment provisions, the Government’s previous position was to defer the application of the then 20% divestment requirements until the end of the life of the Contract of Work. If the government maintains this stance during the upcoming round of CoW negotiations, JMI’s obligations in relation to divestment during the first 30 years of production will remain as per the original terms of the Contract of Work,” the company said on a press statement.

Indo Mines is expecting that any changes to the CoW will not materially affect the business or operation of JMI. However, Indo Mines will continue to take advice and monitor the situation with its local partner, who owns 30% stake in JMI.

The project has captured an eye from several major investors. Credit Suisse recently has been appointed to assist Indo Mines with funding, while Rajawali Group has acquired 57.32 million shares in Indo Mines. Sampoerna Group also reportedly interested in investing the project. ([email protected])