Rio Tinto Group, the world`s third-largest mining company, said a planned US$2 billion nickel project in Indonedia may not proceed without the company getting an extended forestry permit.

The company wants a 30-year forestry permit along with its mining permit, or “there`s a chance this project will not go through,” said incoming chief executive officer Tom Albanese in an interview before meeting Indonesian vice-president Yusuf Kalla on Monday.

“It`s a big thing. That`s why I am here,” he said.

The price of nickel, used to produce stainless steel, reached a record US$50,200/t in London April 24.

The metal is trading at US$48.700/t, up 46% since the year started.

Indonesia, now debating a mining bill, is trying to win US$22 billion in annual investments to power Southeast Asia`s largest economy, rich in coal, copper, gold, nickel and tin.

The Ministry of Forestry only gives five-year renewable permits for mining companies seeking ore in forests.

“I don`t think we`d find it acceptable that every five years we`d need to negotiate,” said Mr Albanese, who replaces Leigh Clifford on Tuesday. Mr Clifford will stay with the company until September.

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