Indonesia to allow talks on mine contract extension

The Indonesian government will allow negotiation on mine contract extension to begin 5 to 10 years before a concession contract's expiry, compared with the current rule of two years, a minister said here on Thursday.

For coal mine, the talks over contract extension will be allowed to kick off 10 years before the contract expiry and no later than 2 years before the expiry, according to Indonesian Energy and Mines Minister Sudirman Said.

For other minerals, Said said the commencement of the talks will be allowed five years before the contract expiry and no later than one year before the expiry.

The minister said the government would revise a rule over the time for miners to propose extension of contract.

Indonesia is the world's largest exporter of thermal coal and the world's biggest producer of tin as well as home to the world's second-biggest copper mine.