Trade deals take shape between Ontario and firms in Indonesia

Several members of the Team Canada trade mission to Asia recently negotiated investment deals in Indonesia that will affect Ontario’s mining and exploration industry.

The signings, which include memoranda of understanding as well as multi-million-dollar deals, will entail geophysical and environmental surveying, exploration and development, and expansion of current operations.

* Mississauga-based Aerodat signed a preliminary agreement with P.T. Multinusa Mineral of Jakarta to market and develop airborne geophysical services for the oil and gas and mining sectors.

* Burlington, Ont.-based Geomatics International signed a preliminary agreement with Jakarta-based Multinusa Komunindo Saki to transfer airborne and remote-sensing technology to Indonesia from Canada.

* Golden Panthers Resources of Toronto signed an agreement to acquire and expand a gold mining operation in Kalimantan, belonging to P.T. Puncok Cyclop Minerals.

* P.T. Inco, a 59%-owned subsidiary of Inco, will spend $812 million to expand its nickel mining and smelting operation in Sulawesi, following the signing of a 30-year extension of its contract of work with the Indonesian government. The expansion, to be completed by 1998, is expected to boost annual production by 50%, to 150 million lb. of nickel in matte.

* Atomic Energy of Canada signed an agreement with Indonesia’s atomic energy agency, Badan Tenaga Nasional, to conduct joint research and development projects.

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