[goldrush] so claims indonesia ... again

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Indonesia is in the same boat as all the other nations in the oncoming depression and so they have re-activated an old chestnut for foreign investors - that there's gold in them there hills - specifically, in Lembata:

When weighing the bullish claims against the independent geological evidence being made about Lembata's gold mining potential, there is reasonable cause to suspect that Indonesia's well-connected and colorful mining magnate, Jusuf Merukh, is bidding to attract foreign investment based on tenuous claims.

Critics and officials say his recent assertions that there are major gold deposits in the area are akin to those made during the 1997 Bre-X scandal, where a gold mine in Kalimantan in which Merukh had a stake was touted as potentially the world's largest, but after luring foreign investment from US mining giant Freeport McMoran, which was coaxed into taking an 85% stake in the venture, it came up dry.

The investment climate in Indonesia and the peculiar nature of duplicate local government departments at all levels has fuelled confrontation, along with environmental and religious considerations:

Indonesia is top heavy with a burdensome bureaucracy: each district replicates all national departments. Many are starved of operational funds, so a large mine offers hope of much-needed income. However, that impulse is checked by national regulations related to environmental protection and community consultation, which must be enacted before any mining activity goes ahead.

More than that, in a place like Indonesia, community unrest can cause a thorn in the side for any new venture, even if the national determination, at government level, is for a project to go ahead:

That did not stop the Sumbawa mine from closing down when simmering community unrest over environmental destruction, unmet compensation demands and social issues eventually erupted, with local people burning down areas of the mining camp.

Even officials get in on the act:

Sembiring, the recently retired head of the Department of Minerals in Bandung, said: "There are no proven minerals in Lembata. But there are rumors of bribery. Mr Merukh has a bad reputation in mining circles, so I do not care what he says. The mine will not go ahead. I give you a guarantee. There will be no mine."

"The people have the last say and if they do agree, then there will be no mine. There is no contract of work [COW]. It would have to be issued by the national government to the investor. I know a COW has not been issued, nor will it be. Merukh is not being honest if he says it is going ahead."

Holy cow, can you imagine that happening in Britain?