March 26, 1997
Chronology of Bre-X activities in Indonesia
The latest Bre-X news and analysis
TORONTO (Reuter) - Following is a chronology of the discovery of one of the world's biggest gold
finds, in the Busang area of Indonesia's East Kalimantan province, and the subsequent controversy
over its ownership and development:
1993
- Small Calgary-based exploration company Bre-X Minerals Ltd. starts gold exploration in Busang, an
area of rain forest and rugged hills on the island of Borneo.
October - Bre-X and Canada's Barrick Gold Corp. fail to reach agreement on joint venture on
Busang. In February, 1996, Bre-X Vice-President Steve McAnulty describes that as "the best deal
we never did."
1995
October - Bre-X says Busang could contain more than 30 million ounces of gold.
1996
Feb. 12 - Indonesian Mines and Energy Ministry says Bre-X has found gold deposit of around 40
million ounces.
March 14 - Bre-X says Busang holds 30 million ounces of gold "plus, plus, plus."
April 23 - Bre-X listed on Toronto Stock Exchange. Price rises $5 Canadian to C$192.50 within
minutes of opening.
April 24 - Canadian miner Teck Corp. says it passed up opportunity to buy stake in Bre-X at C$50 a
share. Hints that it has not yet abandoned chase.
May 10 - Bre-X shareholders approve 10-for-1 stock split. Stock price at C$201.75. Bre-X says
little chance of hostile takeover.
June 20 - Bre-X announces Busang reserves may be up to 39.15 million ounces.
July 22 - Bre-X raises Busang gold estimate to 46.92 million ounces.
Aug. 19 - Bre-X begins trading on U.S.-based Nasdaq system.
Sept. 5 - Bre-X names J.P. Morgan and Co. as financial adviser, Republic National Bank of New
York as corporate adviser.
Sept. 26 - Bre-X says it starts search for major mining partner to help develop Busang.
Oct. 10 - Indonesia says it is delaying Bre-X contract of work for Busang II and III areas containing
bulk of gold until it sorts out ownership dispute with local partners.
Oct. 16 - U.S.-educated Indonesian businessman Jusuf Merukh, who has undisputed 10-percent
stake in Busang I, says he is entitled to 40 percent stake in whole Busang claim.
Oct. 28 - Bre-X says it has alliance with PT Panutan Duta, company controlled by Indonesian
President Suharto's eldest son Sigit Harjojudanto. Says company to get $40 million over 40 months
and 10 percent of Busang II and III to act as consultant and help deal with administrative and technical
matters.
Nov. 1 - Canada's Barrick Gold Corp. says its association with company controlled by Suharto's
eldest daughter Siti Hardiyanti Rukmana has nothing to do with Busang.
Nov. 26 - Bre-X says Indonesian government has told it the government wants Barrick to have 75
percent stake in Busang. Barrick confirms it is in talks with Bre-X over Busang.
Dec. 2 - Canadian miner Placer Dome Inc. says it wants to be a partner with Bre-X in Busang.
Dec. 3 - Bre-X estimates Busang gold reserves at 57.33 million ounces.
Dec. 9 - Indonesia says Bre-X and Barrick have agreed to split Busang 25-75 and give 10 percent to
government.
Dec 17 - Indonesia says Bre-X and Barrick agreed to split Busang 22.5-67.5 with 10 percent to
government.
1997
Jan. 14 - Placer Dome offers $5.0 billion merger with Bre-X. Jusuf Merukh files C$2 billion
(US$1.48 billion) lawsuit in Canada against Bre-X over their Busang ownership dispute, claiming
Bre-X used Merukh's information to discover the richest parts of Busang.
Jan. 15 - Teck Corp. says it more hopeful for shot at Busang. In Jakarta, industry sources say timber
tycoon Muhammad "Bob" Hasan, close associate of Surharto, has taken 50 percent interest in PT
Askatindo Karya Minerals, which has 10 percent interest in Busang II and III.
Jan. 17 - Indonesia sends letter to Bre-X and Barrick giving Feb. 17 deadline to settle with local
partners.
Jan. 23 - Mines and Energy Minister Sudjana says Indonesia will seek other investors in Busang if
Bre-X and Barrick fail to meet February deadline.
Jan. 29 - Teck Corp. and Newmont Mining Corp. discuss joint bid for Busang and lobby Indonesian
government for an open auction.
Feb. 5 - Placer Dome says Indonesian President Suharto asks his friend Muhammad "Bob" Hasan to
vet proposals for the rich Busang gold find.
Feb. 16 - Bre-X signs deal to develop Busang with New Orleans-based Freeport McMoRan Gold
and Copper Inc. and Indonesian interests.
Bre-X gets 45 percent, down from original 90 percent stake. Freeport receives 15 percent and
remaining 40 percent goes to Indonesian government and two Indonesian companies. Hasan signed
agreement on behalf of Indonesian interests.
Feb. 17 - Bre-X raises estimates of Busang gold reserves to 70.95 million ounces. Resource
calculation completed by Kilborn SNC Lavalin of Toronto.
Feb. 18 - Indonesian government approves Bre-X proposal to develop Busang gold site.
Feb. 19 - Bre-X head of exploration John Felderhof says Busang site could contain up to 200 million
ounces of gold. Bre-X Chief Executive David Walsh says Bre-X never owned 90 percent of Busang,
says investors were mistaken to believe this was so.
Feb. 21 - Bre-X issues statement clarifying its rights to Busang and the sale of company's stake to a
third party. Bre-X was responding to news reports that it must give right of first refusal to Indonesian
partners.
March 11 - Top Indonesian mining official tells Toronto mining conference that recent battle over
Busang has caused uncertainty among foreign investors in Indonesia.
March 19 - Bre-X chief geologist at Busang site, Michael de Guzman, falls out of helicopter while en
route to site. De Guzman was co-discoverer of Busang find.
March 20 - Indonesian officials suspect de Guzman's death was a suicide. Police obtained note written
by de Guzman before accident which indicated he was suffering from fatal illness.
March 21 - Bre-X shares plummet on Toronto Stock Exchange following Indonesian newspaper
report which suggested Freeport McMoRan's tests of Busang site did not match Bre-X's findings.
Coming on the heels of de Guzman's death, skittish investors lopped C$800 million ($583 million) off
Bre-X's market capitalization before stock made modest recovery.
March 23 - Indonesian officials find de Guzman's body.
March 24 - Bre-X Chief Executive David Walsh says he is confident of accuracy of assay results and
the calculation of resources at Busang. Threatens legal action against certain parties and publications
for "unsubstantiated allegations."
March 25 - Indonesian government says processing contracts of work for Busang II and III.
March 26 - Bre-X says test samples from Busang site may have been overstated, reveals that it hired
independent mining consultant Strathcona Mineral Services Ltd. last week to review Busang program.
In a separate statement, Freeport says analyses of its own drilling results so far "indicate insignificant
amounts of gold."
Toronto Stock Exchange halts Bre-X until further notice. |
