FYI again to all.
The Bre-X Saga:
Fortune or Folly?
Indonesia delegates mum on Bre-X
Tuesday 26 August 1997
Stephen Ewart, Calgary Herald
The silence bordered on deafening as a high-level Indonesian mining delegation met local players in the industry Monday.
Absent was any mention of Bre-X Minerals Ltd. or the biggest fraud in the mining history as Ida Bagus Sudjana, Indonesia's mines and energy minister, delivered a speech to representatives of Calgary mining companies.
"In general, the relationship between the Indonesian and Canadian mining interests has been fruitful for all of us over the years and we hope to continue such relations in the future," Sudjana said.
That was as close as Sudjana got to Bre-X and it's evident the Indonesians want to put the fiasco behind them.
Canada accounts for 75 per cent of the investment in Indonesia's mining industry, so the need for good relations between the two countries is obvious, said Adjat Sudradjat, director of mines in Indonesia.
"We come here to tell you we are very pleased to invite the investor," he said.
Sudradjat acknowledged after the half-day meeting there may have been some companies that thought the Indonesian government was leery of foreign companies because it made changes to its mining regulations in the wake of Bre-X.
Indonesia traditionally had a reputation for having one of the best natural resources regulatory systems.
The delegation stopped in Calgary before Sudjana travelled to Edmonton for an energy conference.
"It's a reassurance trip," said Ranjeet Sundher, a Vancouver native who works for Jakarta-based Indogold Exploration Services.
Sundher, whose company acts as a local agent for foreign companies seeking to mine Indonesia's resource-rich islands, said the primary focus of the meeting was to assure junior companies they are welcome.
The Indonesians acknowledge they made mistakes post-Bre-X, said Sundher, who is a member of the delegation.
"The main mistake they made was thinking that all junior companies had no expertise and were maybe shady."
Most of the discussion focused on new mining laws, including a reduction in taxes on mining companies.
"I'm not going to comment on Bre-X except to say that I think the Bre-X drama unfortunately has overshadowed a lot of important and positive developments in the Indonesian mining sector," said Scott Hand, president of Inco Ltd., which has had a successful nickel-producing subsidiary in Indonesia for 30 years.
- The issue: Indonesian mining delegation visits Calgary. - What's new: Indonesians seek 'fruitful' relations.
Peace again, NoMoney |
