"Inco has told many lies. Though it would need a process, it is quite possible for the government to terminate its contract with Inco," Executive Director of Ires Marwan Batubara said here on Wednesday.
He said that a number of regions had felt being disadvantaged by the presence of the mining firm in their areas.
The regional government of Southeast Sulawesi said Inco did not keep its promise to relinquish some of its concession land totaling 63,000 hectares.
Southeast Sulawesi Governor Nur Alam said he had met with the management of Inco for 14 times. "They have promised to hand over some of the land but up till now no realization has been made," he said.
In the meantime, the Central Sulawesi province also demanded that Inco keep its promise to build a smelter project in Bohodopi Block, Borowali district.
Based on its contract with the regional government, Inco should build a smelter in that location in 2010 at the latest, yet no realization has been made until now.
The Central Sulawesi government also asked Inco to streamline the acreage f its land by 50 percent from the previous acreage of 35,000 hectares.
Central Sulawesi Governor Longki Djanggola even urged Inco to leave Central Sulawesi if it failed to realize its promise.
According to Marwan, the demands of the regions were just normal because Inco had failed to keep its promises.
"These regions have been waiting for the firm to keep its promises for more than 40 years since Inco signed work contracts with them in 1968," Marwan said.
The majority of Inco`s shares, accounting for 58.73 percent, are owned by Vale Canada Limited, while 20.09 percent and 21.18 percent others were respectively owned by Sumitomo Metal Mining Co Lted and the general public.
(Uu.A014/HAJM)
Editor: Priyambodo RH
Copyright © ANTARA 2011
