Indonesia plans to limit the area that metal and coal mining firms can explore in the mineral-rich country in a bid to prevent domination by a few companies, a legislator said on Monday (14\/4\/08), Reuters reported.<\/p>\n
A draft bill is expected to be passed by August, said Airlangga Hartarto, chairman of a parliamentary commission in charge of energy and mining issues, said. He added there are currently no such limits.<\/p>\n
Indonesia plans to limit exploration and exploitation areas for metal mining to 100,000 hectares and 25,000 hectares per firm respectively, he said.<\/p>\n
It also plans to limit exploration and exploitation areas for coal mining to 50,000 hectares and 15,000 hectares per firm respectively, he added.<\/p>\n
\"This is aimed at preventing mining firms from controlling large areas,\" Hartarto told reporters. He, however, added that the limits will not affect existing contracts.<\/p>\n
Despite a global price boom for most commodities that has prompted a fresh flurry of investment and mega-mergers, uncertainty over the new mining law has hampered the development of the country's rich coal, copper, gold, tin and nickel deposits, a key driver of economic growth.<\/p>\n
Indonesia expects to produce 205 million tons of coal in 2008, with domestic demand seen at 52 million tons and the remainder to be exported, according to energy ministry data.<\/p>\n
The government said late last year that it expects investment in geothermal and mining products to reach $1.55 billion in 2008, compared to $1.35 billion in 2007.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/govt-plans-to-limit-mining-areas-legislator-1209450075", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }