Vale asks for extension of mining contracts

IDX-listed nickel producer PT Vale Indonesia, formerly known as Inco Indonesia, has asked for extension of its nickel mining contracts in Sulawesi as part of the ongoing renegotiation of the company?s contracts with the government, Kontan reported on Monday.

Vice Minister of Energy and Mineral Resources Rudi Rubiandini said in Jakarta recently that like major miners such as Freeport Indonesia and Newmont, Vale had also asked for extension of its mining contracts.

Vale?s President Director Nico Kanter acknowledged that Vale had formally asked for an extension of its mining contracts with the government.

?We will carry out expansion with total investment of US$2 billion. For this we will ask for an extension of contract because in business calculation, it will take a long time to recover the investment, he said. ?We are now still waiting for the government?s agreement,? he said, adding that the company?s current mining contract will end in 2025.

At present, Vale has nickel mine concession of about 118,387 hectares in South Sulawesi, 36,635 hectares in Central Sulawesi and 35,489 hectares in Southeast Sulawesi. (*)