AFRICA was undoubtedly the mining investment story of 2010. This year could be Indonesia's turn - or perhaps that will be 2013 or 2014. But, as they say, it will happen.
Australian company involvement in our northern neighbour has left a very patchy record.
But the archipelago is rich in resources and, with the Chinese and others stitching up mining deals all over the world, explorers can no longer afford to be sniffy about any jurisdiction -- as evidenced by a number of companies now moving into Sudan.
Energy and mining generate about a quarter of Indonesia's GDP.
The Indonesia Mining Association, however, points out that the country ranks sixth in the world for mineral resources, but 46th in terms of attracting investment for the sector.
It is still a high-risk jurisdiction. No explorer can be entirely sure that the playing rules won't be changed in the future, or that troubles won't erupt with local communities.
Yet banks are showing increasing willingness to finance projects in Indonesia.
The country has also applied to be included in the Norway-based extractive industries transparency index -- a sign that governance is being taken seriously.
Space is the enemy today, so there's room for only a partial rollcall of Indonesia plays.
Coal is one of Indonesia's star sectors, and last week Overseas & General (OGL) -- which is dual-listed in Singapore and Australia-- expanded its project area in Sumatra.
Among recent analyst recommendations is Kingsrose Mining (KRM).
Southern Cross Equities put a "buy" on the stock last month after a site visit to KRM's Way Linggo goldmine in Sumatra, where production is expected to be at least 45,000 ounces a year at a cash cost of $147/oz after silver credits.
Helmsec Global Capital late last year saw significant upside in Sihayo Gold (SIH), which is focusing on Sumatra.
Analyst Jean-Francois Bertincourt thinks SIH could develop a medium-scale gold operation within 18 months.
He points out, too, that Sihayo has the most secure type of land tenure available in Indonesia and, just as importantly, has as a joint venture partner the large and diversified Indonesian miner Aneka Tambang (ATM), which dual-listed here in 2002.
For copper-gold, Augur Resources (AUK) is active in Java, while Prosperity Resources (PSP) is on a similar quest in Aceh.
Arc Exploration (ARX) recently reported its first gold assays from sampling at the Kowo prospect on Sumbawa island.
Sumatra Copper & Gold (SUM) reported an intersection of 2.65m at 3.33 grams/tonne gold, 67.3g/t silver along with copper, lead and zinc.
The company already has a JORC resource of 2.15 million ounces of gold and 24 million ounces of silver.
Among others are Winchester Resources (WCR) with manganese in West Timor, Pilbara Resources (PLS), which in October took an option over an Indonesian gold target, Victory West Moly (VWM), with molybdenum and nickel projects, and Finders Resources (FND), which is developing a copper mine on Wetar Island and exploring gold and silver in Sumatra.
Put in perspective
PUTTING Africa in some perspective is the Hong Kong commodities team at Standard Chartered.
They write: "Africa is not delivering despite its enormous potential. Today West Africa does not export one tonne of palm oil or iron ore.
"In Mozambique, we are still waiting for the first tonnes of coking coal and DR Congo runs at around 10 per cent of its true copper potential. We think Africa is about to take off but again it's too late for 2011 and 2012."
Tassie spin-off
TALK about pressing all the buttons.
Minemakers (MAK) has previously announced a spin-off in the form of the planned TNT Mines to advance its Tasmanian tin-tungsten-fluorspar projects.
All three are in bull mode, and now TNT will also acquire known tin, lead and silver deposits, with one tenement surrounding the Mt Bischoff tin mine.
(20min delay)