Antam told to halt exploration in Maluku

JAKARTA (JP): The provincial office of the Ministry of Mines and Energy in Maluku has requested state-owned mining company PT Aneka Tambang (Antam) to stop its gold exploration activities on Haruku island at the community's request, an official said.

"PT Antam is requested to temporarily cease its exploration activities," said head of the district John Kansil to Antara last week in Ambon, the capital of Maluku. "Meanwhile, we are trying to clarify to the community the purpose of the exploration activities."

Local prominent figures and forest authorities expressed concern that the mining company's exploration activities overlapped tanah adat -- land properties collectively owned by local residents.

According to them, PT Antam had started parceling their land for its exploration activities without asking the tenants' permission.

In addition, the company had installed "Protected forest area" signs on the tanah adat owned by the local residents since 1992.

The community also expressed environmental concerns related to excavation activity on the plot, which located only one meter away from Wai Ira river and PT Antam did not accommodate any waste reservoir.

Head of Haruku village authority Ely Kissya said the community usually used water from the river for drinking, bathing and washing. On a rainy day, the river became muddy and oily.

"Our main concern is this river conserves Lompa fish habitat which can only be caught after the harvesting season," he said.

He said a letter of concern had been forwarded to the governor of Maluku, the provincial House of Representatives and five related ministries.

Kansil, however, said the environmental concern was unreasonable because the exploration activities had little possibility of polluting the river.

"Lompa fish still has high yield," he said.

He added PT Antam had also received an agreement from the governor on exploration activities on the island since 1992.

"We have not exploited the area. Our purpose is to know the gold reserve there," Kansil said. "Previously, the exploration activities in Aboru and Wassu villages failed due to local communities' concern."

PT Antam is set to float shares through Jakarta, Surabaya and London stock exchanges later this year.

The company expects net profit to double to Rp 69 billion (US$28.99 million) this year from Rp 35 billion in 1996.

The company's gold sales totaled 1,929 kilograms last year and are predicted to reach 2,000 kilograms this year.

Aneka Tambang said earlier that the 1996 sales were below the initial target of Rp 380 billion due to the lower price of nickel, bad weather and a malfunction at its plant and loading facility in South Sulawesi.

Antam's president, Darmoko Slamet, said the target assumed that the price of nickel on the world market would average at $3.65 per pound, but it only averaged $3.40 per pound. (10)