Indonesian Political, Business & Finance News

Antam told to halt exploration in Maluku

| Source: JP

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)

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