Indonesian Political, Business & Finance News

House team to allow four mines to proceed in protected forest

| Source: JP

House team to allow four mines to proceed in protected forest

Rendi A. Witular, The Jakarta Post, Jakarta

A special team formed by the House of Representatives
has agreed to permit four mining companies to resume open-pit
mining operations in protected forests.

"The four mining companies can definitely resume their
operations. The special team made the assessment based on the
impact of their explorations on the environment, their amount of
deposits, and their post-exploration reclamation efforts," team
member Achmad Harvizi Kurnain told The Jakarta Post.

The team comprised legislators from the Commission III for
forestry and agriculture and Commission VIII for energy and
mineral resources; environment; science and technology.

Documents made available to The Post say the four companies
are PT Gag Nickel in Gag island, Papua province, PT Weda Bay
Nickel in Tabobo, Maluku province, PT Nusa Halmahera in Central
Halmahera, Maluku province, and PT Citra Palu Minerals in Palu,
Central Sulawesi province.

They are among 22 mining companies recently proposed by the
government to be allowed to resume open-pit mining operations in
protected forests.

Forestry Law No. 41/1999 bans open-pit mining operations but a
clause in the law allows such operations provided there special
permits have been issued by the House.

The documents also indicate that the team has delayed
assessing the government's proposal regarding four other
companies because of a lack of data specifying the locations of
their contract areas. These four companies are PT Westralian Atan
Minerals, PT Kelian Equatorial Mining, both located in East
Kalimantan, PT Meares Soputan Mining in North Sulawesi, and PT
Arutmin Indonesia in South Kalimantan.

The team is still studying the government's proposals with
regard to the remaining 14 firms.

Mining investors have raised concerns about the 1999 Forestry
Law as it was implemented after many of them had conducted
expensive exploration in areas that were later designated as
protected forests.

Reports said that some 150 companies had been affected by the
ruling.

However, the ruling has gained a warm welcome from
environmentalists who consider that open-pit mining operations
are too dangerous to the environment and cause severe damage to
ecosystems. Despite the claims by mining companies that they can
restore their mining areas through reclamation, experts believe
that reclamation is not able to restore the environment to its
former condition.

The Ministry of Forestry was initially strongly opposed to any
proposals to allow mining companies to operate open-pit mines.
But, it recently toned down its opposition given strong pressures
from other ministries, particularly the Ministry of Energy and
Mineral Resources, and investors.

Meanwhile, the Ministry of Forestry regretted the special
team's decision to grant Citra Palu, which is owned by Anglo-
Australian mining giant Rio Tinto, a license to resume operation
as the company was operating in a highly protected conservation
forest, namely Taman Hutan Raya Proboya Peneki in Palu

"There's no chance whatsoever for mining companies to operate
in a conservation forest," said Koes.

Koes added that the company had previously been rejected by
Palu residents, who feared the exploration would affect the
purity of water in the provincial capital of Palu.

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