Robust has no plan for further divestment
Friday, March 9 2012 - 05:18 AM WIB
Australian-listed metal exploration firm Robust Resources Limited?s Romang Island gold project in East Nusa Tenggara said that the company does not expect to undertake any further divestment under the newly-issued Government Regulation No 24 on foreign ownership in mining project.
It said that Romang Island has already complied with divestment requirement set under the 2009 Mining Law.
?Having recently converted its Indonesian incorporated operating entities to foreign investor company (PMA); and taken on a strategic Indonesian investor in Salim Group company, PT Kilau Sumber Perkasa, the company?s Romang Island project is already compliant with divestiture requirements under the Mining Law 4/2009 and does not expect to have to undertake any further divestment under the new regulations,? the company said.
Robust earlier said that Droxford International Limited, a company controlled by Indonesia?s Salim Group, controlled 8.172 million shares in Robust and became the company?s second largest shareholder with a 9.35% shareholding.
The Government Regulation No. 24 requires foreign-owned mines to gradually divest up to 51 percent stakes to Indonesian companies after 10 years of commercial operations. Under the old regulation, foreign-owned mines were only obliged to divest 20 percent shares to Indonesian companies.
The government regulation also regulates that the extension of coal contract of works (CCoW) and contract of works (CoW) will be decided by the Ministry of Energy and Mineral Resources and not the local governments.
?The company will continue to take advice from and to monitor the situation with its local partner, who currently owns 22.5% of the Indonesian incorporated subsidiary that holds the Romang Island project in addition to 9.35% of Droxford,? the company said.
Editing by Adianto P. Simamora