Indonesian Gold (56 page)

‘
No.
'

‘Then there should be no difficulty in assigning the
rights to whomever the government wishes?'

General Sukirno squirmed uneasily, experience telling him
that he must be careful now.
‘There is always the international community to consider,'
he
warned.

The President's son laughed loudly.
‘And who cares what
the international media has to say?'

‘
It would be best to leave them with
something.'

‘We'll take their contribution into
consideration.
'

‘There is also the question of relocating the local
people,'
Sukirno reminded.

‘
It was my understanding that there were no Dayaks on
these sites.
'

‘That is also true,'
the older man replied,
‘but this would be an opportune time to relocate the nearer
villages, whose people still claim traditional ownership over the areas which encompass the
sites.'

‘
Those living in timber concession
areas?'

‘Yes.'

‘Is there a relocation scheme already in
place?'

‘It was sent to the President for his
approval.
'

‘What else is required?'

The General pondered the question for some moments before
responding.
‘It would be desirable to have more troops in the area.'

‘Consider it done,'
the
President's son promised.

****

In the days that followed, obsessed with lingering images
of gold ingots leaving the country in the middle of the night, the President's son summoned Lim
Swee Giok, determined to redirect this flow into Palace coffers. The Indonesian, Chinese
cukong
immediately responded, offering his offshore banking infrastructure as the vehicle
to facilitate Baron Mining's acquisition of Borneo Gold Corporation's interests in the P.T.
Kalimantan Gold's Longdamai concession.

Before the end of that month, when Indonesia's squeaky
wheels of commerce had wobbled forward yet another turn and the major players in two continents
remained quietly confident of their imminent windfall, Palace disharmony would thrust the
magnitude of the Longdamai discovery upon the world stage, driving BGC's stock to unimaginable
highs.

****

Chapter Twenty

Los Angeles

Experience told Lim Swee Giok's son, James Salima that by
mid-afternoon, the haze would turn reddish-brown, driving Los Angeles' rapidly growing population
of asthmatics indoors. The Indonesian, Chinese financier had lived in California long enough to
differentiate between smog and early morning fog, the blanket of moist, whitish haze severely
curtailing his view as he gazed wistfully, towards the East.

When he and his brother, Denny had graduated from the
University of California, both had been desperate to remain in the United States. Their father,
Indonesia's foremost banker whose extraordinary wealth placed him amongst the most powerful
entrepreneurs in Asia, had wanted his sons back in Jakarta to assist oversee his growing empire.
James had sought the support of stepmother, Ruswita, who had intervened on their behalf,
convincing Lim that James' suggestion to commence operations in the United States would be a
strategic move for their family flagship, the Central Asia Pacific Bank. With the ageing
cukong's
blessing, the young men embarked on a search for an appropriate corporate vehicle
suitable for the Salima family's American operations. This journey took them into Bluegrass
Country where, in exchange for financial support for the governor's political campaigns, the
Salima boys not only acquired a local banking license, but access to the White House. In James
Salima's opinion, never had four hundred thousand dollars been better spent, their family network
spreading across the United States and Canada, and back into Asia via Hong Kong, China, Taiwan
and Japan. The extent of their empire had grown to include shipping, industry, all forms of
financial services, property development, communications, and, more recently, mining.

James' thoughts turned to the complex negotiations at
hand, and his whirlwind visits to Toronto and Dallas. Across the border, he had held discussions
with the former Canadian Prime Minister, now Chairman of Baron Mining, then he had flown to Texas
where he continued the dialogue under the alert eyes of Secret Service agents, as he walked
through spacious, family ranch surrounds. Having secured tacit approval for the proposed
corporate structure, James had returned to Los Angeles to finalize the relevant corporate
arrangements, in anticipation of Baron Mining's unofficial acquisition of the East Kalimantan
Contract of Work, over the area currently held indirectly by Borneo Gold Corporation.

The Salima family acted as trustees not only for elite
Indonesian interests, but also Hong Kong, China, Taiwan and Singaporean groups. In effect, the
Salima controlled Central Asia Pacific Bank's offices at 1912 Sunset Boulevard in Los Angeles,
managed accounts for the majority of wealthy Chinese who dealt in North America, amongst their
clients, Myanmar's drug barons and China's burgeoning, capitalist government
officials.

And yet, in the years since he had first established the
Salima family interests in the United States, James had never envisaged that, one day, he would
be party to a deal of the magnitude that the Indonesian-Canadian proposal offered. Since first
becoming aware of the massive find, the thought of participating in what would be the world's
largest gold mine had preoccupied his thoughts to the point of obsession, until his father had
finally given the green light to proceed with the facilitation process on behalf of the powerful,
vested interest groups, on both sides of the Pacific. When he discovered that his family had
somehow become the beneficiary of a small parcel of Borneo Gold Corporation's stock almost a
decade before, this only added to his confidence that this enormous opportunity had been fated to
fall into his hands.

Under the proposed arrangements to assume control over P.
T. Kalimantan Gold's Longdamai discovery, the Indonesian Government would challenge the
legitimacy of the BGC subsidiary's right to mine the concession area, citing misrepresentation at
the time the original contractor, Dominion Mining, had applied for the exploration rights. The
Ministry of Mines & Energy would also emphasize the fact that the local operating company,
P.T. Kalimantan Gold had not concluded any formal arrangement with the government, to
exploit/mine the area in question.

As this action would undoubtedly cause considerable
concern within foreign investment circles, and generate negative, international press when BGC
screamed foul, the Central Asia Pacific Bank would step forward as the newly appointed
owner/operator, supported by its vast, capital reserves, and offer an adequate compensation
package to BGC, one which would sit well with the international investment community. And, in so
doing, provide the desired buffer to protect both Indonesian interests, as well as those of Baron
Mining, the latter to be appointed by CAP Bank as managers, once all rights had been effectively
transferred to the new consortium. As for BGC, Salima expected an initial plunge in that
company's perceived value when punters became aware of the Indonesian Government's challenge.
However, there was no doubt in James Salima's mind that, by the time the dust had settled and
Baron Mining's
de facto
control over the Longdamai deposit became public, both BGC and
Baron's stock would have already risen dramatically, and it was his intention to position the CAP
Bank in the market, to benefit from such movement. He waited with growing impatience for the
Baron Mining representative, Phil Samuels to arrive, his mind filled with the prospect of
millions in fees and profits which would be generated from strategic trading, of both the Borneo
Gold Corporation and Baron Mining stocks, during the volatile transition of ownership.

Habit caused the prematurely balding banker to scratch his
scalp as he further considered the rivalry amongst the Indonesian First Family siblings, and how
their constant bickering had delivered the Longdamai opportunity to his Central Asia Pacific
Bank. His father, Lim Swee Giok had patiently explained why Baron Mining had been selected to
participate in the venture, over other international miners that had already established
operations in the Republic. Many of those companies already enjoyed Palace sponsorship,
precipitating fierce and intense competition amongst the President's offspring whenever new
opportunities arose. James was aware that the Indonesian President encouraged the rivalry, and
that the son now represented by the CAP Bank was vehemently opposed to sharing his future
benefits from the Longdamai gold mines with any of the existing, Palace mining partners –
including the multinational, Freeport. In short, he wanted it all for himself; and, with the
President's blessing, together with CAP Bank's facilitation, it would appear that the Javanese
youngster would have his way.

****

Phil Samuels observed the Chinese-Indonesian's nonchalant
flip of the wrist to demonstrate the insignificance of the potential problem. ‘Jakarta will deal
with the local tribes. Don't concern yourself further with this,' the confident banker
assured.

‘Baron Mining can't afford to have environmental lobbyists
or human rights groups pointing the finger at us,' he warned. ‘You would appreciate, James, that
in the course of the next five years we have a considerable number of leases coming up for
renegotiation in South America, Africa and parts of Asia. Be assured, any leverage we give the
host governments will be used in those negotiations. Whatever needs to be done to ensure a
non-hostile mining environment must be put into place before Baron Mining is identified with the
Longdamai field.'

‘I will pass this back to Jakarta,' James Salima promised.
‘You can be confident that the Dayaks will not pose a threat to the mining operation. Jakarta has
learned from the Freeport, Irian experience.'

‘The Baron Mining Board doesn't want any
bloodshed.'

‘I will emphasize this point,' James said, although he had
no intention of doing so.

‘You have to explain that Baron wants the locals treated
fairly. James, with two former heads of state closely associated with the Baron Board, this issue
is extremely sensitive for us. We need an undertaking from Jakarta that the Dayak communities
most likely to be impacted by the Longdamai operation will be accommodated peacefully – and, more
importantly, fairly.'

‘I'll make your position clear, Mister Samuels. Don't
worry.'

‘Then I can report back to my Board that their concerns
will be addressed, as requested?'

‘Yes,' James replied, ‘after all, we don't want the
Central Asia Pacific Bank's reputation tarnished, either.'

‘Good,' Samuels rose, and placed his left hand on the
younger man's shoulder. ‘Then, in principle, I see no reason why we can't get this all wrapped up
by the end of the month?'

‘The CAP Bank will be ready,' James Salima affirmed, and
with that undertaking, placed the lives of thousands of East Kalimantan Dayaks at
risk.

****

Jakarta

Having been left in reception for more than an hour to
further ponder the urgency of their summons, the Borneo Gold Corporation executives remained
apprehensively silent, in their intimidating surrounds. Although Alex Kremenchug had visited
Indonesian government departments at one time or another, this was Christopher Fielding's first
encounter with Indonesian officialdom, and at such an imposing level. Faxed communications had
sent the two mining executives scurrying for flights to Indonesia, Kremenchug alerting Sharon
Ducay by radio prior to departure, of the potential problem.

‘It might be an idea for you to join us in Jakarta,' he
had suggested.

‘This is no time to be leaving the site,' she warned.
‘Besides, Chris Fielding should be able to answer any of their technical questions.'

‘Have you heard anything over there as to what they might
want?'

‘No,' Sharon replied, ‘there's been nothing flow through
from the Jakarta office. Didn't you call Mines and ask them what it's all about?'

‘Of course I did,' Kremenchug snapped, ‘I called the
protocol section but they were very vague. Have you been having any on-site problems that we're
not aware of?'

‘No, nothing more than the usual,' she said, less than
encouragingly.

Sensing she might be hiding something, Kremenchug pressed.
‘Nothing at all?'

Deep in the Borneo jungle Sharon swatted a mosquito with
the palm of her hand, ignoring the distraction. Over the past week there had been an increase in
the number of Indonesian military at the camp. The officer in charge informed her that the build
up was routine, and part of a general exercise planned for the area. Apart from that, the regular
drilling and sampling program had continued uninterrupted and she had nothing to
report.