text: Bre-X, Barrick said to continue Busang talks. K. T. Arasu 
   JAKARTA 1996-12-06 
   Canada's Bre-X Minerals Ltd and Barrick Gold Corp are to continue negotiations to hammer out a partnership agreement to develop the spectacular Busang gold find in Indonesia, sources close to the talks said on Friday. " The negotiations will be held both in Toronto and in Jakarta, " one source, speaking on condition of anonymity, told Reuters. Another source said most of the key negotiators from both Bre-X and Barrick had returned to Toronto, but declined to say if there had been any progress in their negotiations. Both sources said Bre-X and Barrick did not hold talks on Thursday with Mines and Energy Ministry Secretary-General Umar Said, who is coordinating the negotiations over the Busang find in East Kalimantan. The first source also said Bre-X had until December 21 to submit to the Indonesian Mines and Energy Ministry a feasibility study on the central region of the Busang property, estimated to contain 2. 6 million ounces of gold. The richest parts of the property to the north and south of the central region have been estimated by Bre-X to contain 57 million ounces of gold. " Bre-X is expected to complete the feasibility report by December 16 and submit it to the government before the December 21 deadline, " the source said. He said Bre-X would then formally seek the permission of the Indonesian government to begin construction to develop Busang's central region, which might take up to two years. The source declined to say if there had been any progress in the talks between Bre-X and Barrick. " This is a huge project. . . we are not selling furniture, and Bre-X has 13, 000 shareholders to answer to, " the source said. " While there has been some agreement in principle on some issues, there are still others such as procedures and mechanisms that needed to be sorted out, " he added. The source said no new deadline had been set by the Mines and Energy Ministry for Bre-X and Barrick to strike a deal. The Ministry had given the companies until December 4 to complete a partnership deal, and advised Bre-X to take a 25 percent stake and Barrick 75 percent to develop the property. " As far as I am aware, there's been no new deadline, " the source said. The Ministry's Umar said on Thursday that both Bre-X and Barrick had responded positively to a government letter recommending a 25-75 split in the Busang gold property. The government also wants 10 percent of the property. Umar said the government had yet to receive a formal reply from the companies. He had said earlier that if the two companies failed to reach a partnership agreement, the government would explore other ways to expedite development of the Busang find. Bre-X has a partnership deal with PT Panutan Duta of the Panutan Group run by President Suharto's eldest son, Sigit Harjojudanto, under which Panutan would receive $40 million over 40 months plus a 10 percent stake Busang's richest parts. Barrick has teamed up with a construction company in the Citra Group of Suharto's eldest daughter, Siti Hardianti Rukmana, in what Barrick had said was a partnership " to prepare us for a potential mining development project ".
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