The Indonesian Government has confirmed the tenure of Southern Arc Minerals’ West Lombok and Taliwang Contract of Work applications.

In a letter to the company the Department of Energy and Mineral Resources states that the applications will continue to be respected and new mining business licences (IUP) will be processed without the properties going to public tender.

The confirmation follows an announcement by the company in February regarding the implications of Indonesia’s newly enacted Mining Law.

The department’s letter also states that the government is preparing regulations regarding the processing of IUP licences.

During the first week of March, Southern Arc's management had the opportunity to meet privately with the Indonesian Director General of Mineral, Coal and Geothermal, Dr Bambang Setiawan, who was also a speaker at the 2009 Prospectors and Developers Association of Canada conference in Toronto.

Based upon this meeting and the letter from the department, the company intends to immediately apply for IUP licences for its West Lombok and Taliwang properties. The company is encouraged by these recent developments in connection with its efforts to finalize tenure to its mineral properties in Lombok and Sumbawa.

www.southernarcminerals.com