Mining firms concerned over illegal mining<\/p>\n
JAKARTA (JP): Mining associations voiced concern on Thursday
\nover escalating illegal mining activities and called on the
\ngovernment to restore order in the affected areas.<\/p>\n
The secretary-general of the Indonesian Coal Mining
\nAssociation (IMCA), S. Hadiprayitno, and vice president of the
\nIndonesian Mining Association (IMA) M. Simatupang said separately
\nthat illegal mining activities had taken place for several years
\nin many mining concessions across the country.<\/p>\n
But, they said, the practice had increased significantly since
\nthe start of the monetary crisis to an extent that caused great
\nconcern to mining companies.<\/p>\n
\"The association understands that the illegal mining
\nactivities are motivated by the need to obtain income. But, the
\neconomic difficulties that have been battering the country should
\nnot be taken as an excuse to violate the existing laws,
\nregulations and rules,\" Hadiprayitno said.<\/p>\n
Illegal mining activities had left the companies with big
\nfinancial losses and hampered their operations, they said.<\/p>\n
As the illegal miners do not pay taxes or royalties to the
\ngovernment as contract holders do, the government is not
\nmaximizing its earnings from mining operations<\/p>\n
Under coal contracts, the government receives 13.5 percent of
\ncoal output in royalties.<\/p>\n
\"Furthermore, the illegal mining activities usually cause
\nextensive damage to the environment,\" Simatupang said.<\/p>\n
He added the association had sent letters to senior officials,
\nincluding Minister of Mines and Energy Kuntoro Mangkusubroto and
\nMinister of Defense and Security Gen. Wiranto to ask them restore
\norder in the country's mining areas.<\/p>\n
He said many illegal miners were well backed and equipped with
\nmodern equipment by \"strong people\".<\/p>\n
Hadiprayitno noted coal mining companies which were most
\ntroubled by illegal mining activities at present included state
\ncoal mining company PT Bukit Asam in South Sumatra, PT Adaro
\nIndonesia and Bentala Coal Mining in Central Kalimantan and PT
\nArutmin Indonesia in East Kalimantan.<\/p>\n
\"Adaro has lost two million tons per year or between US$38
\nmillion and $60 million at the current international price due to
\nthe illegal mining activities,\" Hadiprayitno said.<\/p>\n
Simatupang said illegal mining activities were also on the
\nrise in gold contract areas across the country, including the
\nPongkor mining field in West Java owned by PT Aneka Tambang.<\/p>\n
More than a dozen illegal miners, including members of the
\nArmed Forces, were recently killed after being trapped in a
\nmining hole in Pongkor.<\/p>\n
Bukit Asam president R.A. Sunardi, who is also IMCA's
\npresident, said illegal mining activities in its coal mining
\nfield in the Sawahlunto area, West Sumatra, involved more than
\n1,000 local residents, who took about 2,000 metric tons of coal
\nfrom the mine every day.<\/p>\n
The illegal miners sold the coal to traders at Rp 60,000
\n(US$5.40) per ton as against the current market price of between
\n$27 and $29 per ton.<\/p>\n
The traders then sold the coal to a state cement producer in
\nPadang, West Sumatra, for Rp 100,000 per ton.<\/p>\n
Sunardi said Bukit Asam was currently trying to stop the
\nillegal mining activities by persuading the state cement company
\nto stop buying from the illegal miners.<\/p>\n
He added Bukit Asam would permit the illegal miners to
\ncontinue mining in its contract area provided they group
\nthemselves in cooperatives so that the company could deal with
\nthem more easily.<\/p>\n
Bukit Asam would then take the coal produced by the illegal
\nminers and reward them with certain fees in exchange for what
\nthey produced.<\/p>\n
\"We are going to give them some kind of wage for their work. I
\nhope this will be a good solution and the monetary crisis, which
\nis one of the main reasons behind the increase in illegal mining
\nactivities, will be soon over,\" Sunardi said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mining-firms-concerned-over-illegal-mining-1447893297",
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