GO HASAN GO....NEWS RELEASE...Globe and Mail
Placer prodded in Bre-X bid
Key Indonesian businessman encouraged company - to get more bidders interested in huge gold play
Friday, January 17, 1997
By Paul Waldie
The Globe and Mail
With files from reporter John Saunders.
A powerful Indonesian businessman privately encouraged senior executives at Placer Dome Inc. to try to start an auction for the right to develop the country's massive Busang gold deposit.
Mohamad (Bob) Hasan, who owns part of the deposit, also said in a recent interview that he wants more bidders to come forward.
Earlier this week, Vancouver-based Placer Dome launched a $6.2-billion bid for Calgary-based Bre-X Minerals Ltd., which owns 90 per cent of the Busang deposit, considered the largest gold reserve in the world.
Mr. Hasan recently bought half of an Indonesian company that owns the other 10 per cent of Busang and also holds a key exploration licence.
Development of Busang is so far supposed to be carried out by Barrick Gold Corp. of Toronto. Barrick had hired the daughter of Indonesian President Suharto as a consultant and in November the government "suggested" to Bre-X that it strike a private deal with Barrick and hand it control. So far as is known, that is still the government's preference.
That deal, though, was supposed to close weeks ago but has been held up.
Mr. Hasan, a close friend of Suharto's, welcomed Placer's bid and said the process should be opened up to other companies.
"I think [development of the deposit] should be done by people who are really in the business, like Bre-X, Placer Dome or any other company that is at home in this field," he said. "Not necessarily Barrick."
Mr. Hasan, 65, has powerful ties within the country. He has interests in 20 companies and oversees Indonesia's $4-billion (U.S.) plywood industry. He is also a senior Indonesian legislator and a member of several international organizations, including the International Olympic Committee.
"I have many interests," he said in a telephone interview from Indian Wells, Calif., where he is playing in the Pro-Am Bob Hope Chrysler Classic. "I'm in insurance, I have a few banks, I have quite a lot of interests."
He also has close business ties with Suharto and added that he acquired the stake in Busang through two charities headed by the President.
Mr. Hasan met with Placer Dome president John Willson before Christmas in Jakarta and, according to Mr. Willson, expressed concern about the appearance of the Barrick deal. Placer and other gold companies were irritated at Barrick's manoeuvres at the time because they had been negotiating with Bre-X, but were told by government officials to back off in favour of Barrick.
Mr. Hasan "thought it was a pity for Indonesia that this good ore deposit seems to be under an international cloud-- let's not say international, but certainly a cloud in North America--and that he thought that perhaps a different approach might be listened to in Indonesia," Mr. Willson said yesterday.
Placer's bid for Bre-X includes turning over 40 per cent of the deposit to the Indonesian government and Indonesian investors, including Mr. Hasan. Barrick's proposal is believed to include only a 10-per-cent stake for the government.
Mr. Hasan confirmed that he met Mr. Willson. He also said he was happy Placer made a bid.
"I saw a report that Placer Dome and Bre-X are going to talk," he said. "I think that's a good thing. Together they will be stronger. If the shareholders of [Placer and Bre-X] are confident that they should get together, then I think it will happen."
Mr. Hasan said there should be an open bidding process and he encouraged other companies to come forward.
"The best way is according to the rules. If [the bidders] are all public companies, I think they should be in the open. It should be according to the shareholders' wishes."
Mr. Hasan said he has received many approaches about the deposit.
"For the time being we are just listening," he said. "We are good listeners. We just follow the right way."
Mr. Hasan said he has also met with officials from RTZ Corp. of Britain, although he wouldn't say if that company was considering a bid.
However, Mr. Hasan said he has not met with anyone from Barrick and he doubts its deal with Bre-X is firm.
"I don't think [there is a deal] because we have not even been [consulted]," he said. "We are the actual licence holder. If there is any joint venture or any co-operation, [Barrick] should have told us. In actual fact, they have to talk to us."
Mr. Hasan said the charities headed by Suharto hand out $50-million (U.S.) annually in scholarships and contributions to social agencies. They only recently have started investing in companies because Suharto wanted to generate more capital and protect the charities from inflation, Mr. Hasan said. The charities now hold an interest in about 160 companies.
"Even though we make money [on the investments], later on we give it back to the people," he said. "We should [invest] in good companies. Like Placer Dome is a good company."
ps..Question...does anyone know about Hasan's remark "we are the actual licence holder"??? Does that mean that Barrick have to go through Hasan? ...Interesting. |
