The basis of Indonesia’s
modern gold mining sector was established in 1967
by a new mining law, of which perhaps the most important provision was a Contract
of Work (CoW) giving a foreign mining company the right to begin exploration.
Freeport McMoRan signed the first CoW in 1967. The gold sector has dominated
the CoW system since 1987. The Contract of Work system has become a model for
other countries in the region.