Newmont Owner Files Judicial Review on Mining Law

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  • Pemilik Newmont Ajukan Uji Materi UU Minerba

    Pemilik Newmont Ajukan Uji Materi UU Minerba

    TEMPO.CO, Jakarta - PT Pukuafu Indah, shareholder of PT Newmont Nusa Tenggara, has filed for a judicial review over Law No.4/2009 on Mineral and Coal that mandates mining companies to process raw minerals before exporting. Pukuafu Indah, which holds 17.8 percent stake in Newmont, claim that article 169b of the law has robbed them off their constitutional rights.

    In a preliminary hearing at the Constitutional Court yesterday, Fukuaku's legal counsel said that article169a stipulates that a contract of work (CoW)is valid until it expires. However, article 169b of mandates adjustments in the CoW by no later than one year after the Mining Law was enacted.

    R. Sukhyar, mineral and coal directorate general at the Energy and Mineral Resources Ministry, regretted Pukuafu's legal move, particularly after Newmont has agreed to sign a memorandum of understanding with the government to renegotiate its contract on September 3, 2014.

    The Energy Ministry's head of legal department Susyanto said they are prepared to face Fukuaku in court, defending the article in question. According to Susyanto, Fukuaku's lawsuit can have a bad impact on ongoing mining contract renegotiations.

    "If they win, it's very dangerous. The renegotiations can stop and we must go back to the old contracts," said Susyanto.