3 - G-Resources

Overview of Indonesia (cont’d)
► Established mining industry
Indonesia is one of the world’s largest producers of gold (ranked 8th), tin (ranked 2nd after China), coal (ranked the 3rd largest
thermal coal exporter after Australia and South Africa) and copper (ranked 3rd largest, after the USA and Chile)
Indonesia is home to the worlds largest gold producing mine, Grasberg
Minerals and related products represent c.19% of Indonesia’s total exports, with gold being the largest revenue earner
► Major international miners
Major international copper/gold and coal miners have been successfully working in Indonesia for over 20 years:
▬ Freeport/Rio (Grasberg Copper – Gold Mine)
▬ Newmont/Sumitomo (Batu Hijau Copper – Gold Mine)
▬ PT Inco (Sorowako Nickel Laterite Mining and Processing)
▬ OZ Minerals (Martabe Project Gold – Silver Project)
▬ New Hope (Adaro Coal)
▬ Straits Asia Resources (Sebuku Coal)
▬ BHP (Maruwai Coal)
► Mining Law
December 2008 – The Indonesian Government passed Indonesia’s new Mining Law
Impact of new Mining Law
▬ Article 169 of the new law states that current COWs are valid until they expire
▬ This provides Martabe with a minimum of 30 years of operations under the COW
▬ The Indonesian Energy and Mineral Resources Minister has issued a statement reassuring companies that the law
respects the sanctity of COWs
▬ The Martabe COW has been kept in good standing with all obligations to date met, including reductions in area and
completion of exploration and development requirements
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