2013 was somewhat of a watershed, with EMD receiving formal approval from the Justice Ministry, taking up an independent office, employing a Secretary – Event Coordinator and becoming a tax payer.

From the viewpoint of the exploration sector, it was a difficult year. The continuing flow of regulations affecting the mining sector, combined with the end of the mining commodity boom had the impact of further reducing exploration activity. The Fraser report says it all: top 10 for mineral potential, bottom of the barrel for investment environment.

This scenario highlights the value of EMD as a lone voice for the sector and a source of information for those active in the industry. At Rp10 million per year, the monthly membership fee is less than a decent meal for two people.

Frankly, this is barely enough to cover costs, but we have been fortunate to have the support of two generous sponsors, PT. Intertek Utama Services and PT. Micromine Indonesia Perdana, each with Rp50 million grants. Micromine and PT. CSA Global Indonesia also assisted by sponsoring seminars.

Amongst of the highlights of 2013 were the four seminars held at the Gran Mahakam Hotel. There were all highly topical and led by knowledgeable Keynote Speakers. Subjects included:

• “Overcoming Barriers to Exploration and Regional Investment” at which speakers included members of the Association of Provincial Mining Heads. And a relationship was developed based on common concerns.
• “Experience with the Renegotiation of C.O.Ws” at which several company representatives spoke of their experience and Bill Sullivan provided an overview.
• “Forestry Issues and Land Access” at which the Keynote Speaker was Dr. Kuntoro Mangkusubroto.
• “The Unintended Consequences of Recent Regulations in the Mining Sector” at which Ir. Syahrir AB was as Keynote Speaker.

Lively discussion followed each of the presentations.

The Chairman presented papers at two international conferences during the year:

“Exploration is not Mining, but without Exploration, Mining Dies” at “OZMINE 2013” in Jakarta on 16 – 17 April, 2013.

“The Ingredients for Successful Exploration” At the “Geoscientist Conference” in Bali on 27 – 29 May, 2013.

He also contributed articles to the Asian Miner on a bi-monthly basis.

Informal meetings of members to exchange views on current issues were held on a bi-monthly basis. There are very valuable exchanges of information.

Members were informed directly of all upcoming events, but this information is also available on the association website www.emdindonesia.com. Non-members have access to general information on the website but members can access a restricted site with postings of the detail of events and of developments within the mining sector having a potential impact on them.

The program for 2014 will consist of similar events. The first seminar will be held on March 4 at 8 am in the Hotel Gran Mahakam and is entitled “Is There a Future for Foreign Investment in Exploration in Indonesia”. The Keynote Speaker will be Dr. Lobo Balia, previously Senior Assistant to the Minister for Energy and Resources and currently acting as Secretary General to the Energy Council. He will address the factors which led to the 2009 Mining Law and its subsequent regulations. Plans for the May 6 seminar are also under way this will be a joint event with the Association of Provincial Mining Heads addressing issues related to obtaining and operating under IUP.

With the support of senior figures such as Dr. Lobo Balia, EMD will be seeking direct access to policy makers to ensure that they are fully aware of issues facing the exploration sector.

To thank members for their support during the past year and look forward to this continuing in 2014.

To those who are not yet a member, but are associated with the exploration or mine development sectors, we point out that the annual membership fee is a very modest Rp10 million which goes entirely to administrative costs (rental, communication and event costs) that all directors donate their time freely and that the benefits to members and the industry are significant. A 50% discount on the cost of attending seminars is also available to representatives of company members. Please contact Intan on +62 8111 401983 or at secretariat@emdindonesia.com to apply for membership.

We look forward to an active and rewarding 2014 in the firm belief that exploration activity can and will rise again to the level of the 1990’s.

EMD Indonesia.