Indonesian Political, Business & Finance News

Governor backs ban on Rio Tinto's gold mine

| Source: JP

Governor backs ban on Rio Tinto's gold mine

La Remmy, The Jakarta Post, Palu, Central Sulawesi

The Central Sulawesi provincial government has reiterated its
refusal to let the Indonesian subsidiary of Australian mining
giant Rio Tinto enter a protected forest to mine for gold.

"As stated before, we still don't agree to letting this area
be turned into a gold mine," said Governor Aminuddin Ponulele on
Tuesday to a crowd of some 100 activists protesting the plans to
open the forest to mining.

Rio Tinto's Indonesian subsidiary PT Citra Palu Minerals is
unable to mine the area known as the Great Forest Park (Tahura)
after the issuance of Law No. 41/1999 on forestry, which bans
mining in protected forests.

Tahura is about one kilometer away from the provincial capital
of Palu, and protesters said they would reject any mining
operations that came close to the city.

"If the valley is mined, people in Palu will be covered in
dust every day. This will also disrupt flights arriving here,"
said Dedy Irawan, who led Tuesday's protest.

However, Rio Tinto spokesman Anang Rizkani Noor said the
company was no longer interested in mining the Tahura area.

He said the company viewed the mining deposits as unfeasible
although other investors might be interested.

Citra Palu, he added, obtained the mining contract in 1997
before Tahura became a protected forest, and before the Forest
Law was issued.

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