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Eramet Unit, Indonesia Agree on Some Contract Review Points

Eramet SA unit PT Weda Bay Nickel, negotiating with Indonesia to set up a $5 billion nickel mine and smelter, agreed on four out of six points in a government review of the company’s mining contract.

Indonesia will allow Weda Bay to set up the mine and facilities in an area greater than 25,000 hectares (61,776 acres), Thamrin Sihite, director general of coal and minerals at the Energy and Mineral Resources Ministry, said in Jakarta today. In return, Weda Bay will build the smelter, use local workers and services and continue its business under a new mining license after its 30-year contract expires in 2028, Sihite said.