The Presidential Decree No. 28 Year 2011 that allows conditional underground mining in the protected forest areas was issued on 19th of May 2011.
The Presidential Decree will be followed up by first, the Principal Agreement by the Ministry of Forestry (up to 2 years and can be extended), and second, the Borrow and Use Permit by the Ministry of Forestry (up to 20 years and can be extended).
"The long awaited Presidential Decree issuance is truly great news to our zinc concession operated by our 80% owned subsidiary, PT Dairi Prima Minerals (“Dairi”), in North Sumatera. Our team is now in the process of submitting the formal request to ultimately obtain the Borrow and Use Permit to conduct the underground mining activities in the Dairi’s concession” said, Kenneth Farrell, the CEO of PT Bumi Resources Minerals Tbk.
Mr. Farrell further added,”The Presidential Decree which supports the conditional underground mining in the protected forest area is a huge improvement in the Indonesia’s mining industry. It will allow a lot of concession owners to monetize their mining reserves in the near future".
"This also means more added value royalties for the country (Indonesia). We remain optimistic that the Borrow and Use Permit for the underground mining in Dairi will be in place soon. This will lead to Dairi commencing its first production early in 2013 subject to the availability of such Permit and all other conditions being satisfied,” he further said.
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