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Some companies will be hurt but others will survive unscathed following the Indonesian Government’s surprise move to change mining regulations.
Late last week Indonesia announced changes to mining law that would force some companies to control a maximum 49 per cent of their project, with the Government owning the majority share.
While the Government said the move was about ensuring the benefits of mining stayed within the country, several experts said it would seriously deter investment in the region.
According to AAP Perth-based gold miner Kingrose Mining said it was safe from being forced to sell-down its 85 per cent share of the Way Linggo mine.
Newcrest Mining, Australia‘s largest gold company, also said the changes would not affect its Gosowong operations.
BHP Billiton, Rio Tinto, and Santos, along with other international companies, currently hold interests in Indonesia and it is still unclear whether they will be affected by the new laws.
According to the Jakarta Globe Queensland-based Intrepid Mines said it might be impacted by the law.
"The company is currently studying these regulations and is considering its best course of action," it said.