Ownership
Finders Resources Limited currently has interests in mining rights at the Wetar Copper Project through a subsidiary, PT Batutua Tembaga Raya (BTR), which is a limited liability foreign capital investment (PMA) mining services and industrial copper plate manufacturer established under the laws of the Republic of Indonesia.
BTR has an agreement with PT Batutua Kharisma Permai (BKP) and PT Batutua Barit Wetar (BBW) to jointly operate the project by means of a Cooperation Agreement and a separate Ore Sales and Purchase Agreement which provides BTR exclusive right to purchase copper ores. BKP and BBW are the registered holders of the mining tenements and are controlled by Finders' local partner. This structure was developed at a time when mining leases had to be held by Indonesian locals. Following a change of law, Finders intends to move to a controlling interest in BBWand BKP.
Finders Resources has an in-principle agreement with BKP/BBW to issue a 5% interest in BTR which is not diluted by further project financing reducing Finders economic interest in the project to 95%.
Permits
Key permits for theWetar Copper Project are as follows:
- IUP for Copper Mining Operations to PT Batutua Kharisma Permai. Decree number 543-124 Year 2011, dated 9th June 2011, valid for up to 20 years
- IUP for Copper Processing and Refining to PT Batutua Tembaga Raya. Decree number 543-125 Year 2011, dated 9th June 2011, valid for up to 20 years
- An Environmental Impact Assessment (known as AMDAL in Indonesia) relating to the Wetar Copper Project was approved by the Governor of Maluku on 31st March 2010
About 50% of the project area occurs within the boundaries of the former gold operations. This land is largely owned by the local government although traditional land rights exist. BTR rents the land from the local government and has compensation agreements in place with traditional land owners.
The proposed mining area is classified as a production forest (HP/HPK). The process of borrowing the land (Pinjam Pakai) for mine exploitation involves a compensation package and a reforestation plan for the government owned land.
The Province of Maluku has submitted a new spatial plan in which all HPK areas are converted to open ground and no longer administered by the Forestry Department; this re-zoning covers Kali Kuning, Meron and part of Lerokis and is in the final stages of verification.