House to mull OK'ing mines in protected forests

House to mull OK'ing mines in protected forests

Moch. N. Kurniawan, The Jakarta Post, Jakarta

The Ministry of Energy and Mineral Resources is seeking support from the House of Representatives (DPR) for its policy to allow some mining companies to operate in protected forests -- a move which will predictably meet strong resistance from environmentalists.

The move comes as the ministry is still unable to gain full support from all Cabinet members for the policy.

The ministry expects the House to use its political power to persuade or pressure the Ministry of Forestry, the main opponent of the policy, to change its stance.

"We will meet the DPR soon. We expect to have resolution from DPR," Director General of Geology and Mineral Resources Wimpy S. Tjetjep said last week.

According to Wimpy, the government must show fairness towards mining firms which have invested billion of dollars for exploration but now have been banned from continuing their operations by the Ministry of Forestry .

The ministry banned their operations in compliance with Forestry Law No. 41, issued in 1999, which bans open-pit mining operations in protected forests; while the affected mining firms started exploration years before the issuance of the law.

"That's unfair to them, therefore we must give them the best solution," he said.

Following the implementation of the law, about 150 mining companies had to stop their operations because they operated in the areas which the Ministry of Forestry categorized as "protected forests"

Among them are the nickel mining operation of PT Gag Nickel on Gag Island in Papua, and the gold mining company PT Citra Palu Minerals in Central Sulawesi.

Gag Island has a huge nickel deposit, considered the world's largest nickel deposit after those found in Goro in New Zealand and Voissey Bay in Canada.

Gag Nickel is jointly owned by Australian business group BHP Pty. Ltd. and Indonesia's state-owned mining firm PT Aneka Tambang.

Citra Palu is 90 percent owned by Anglo-Australian mining giant Rio Tinto with the remaining 10 percent held by local firm PT Arlia Karyamaska.

The mining firms have for years protested the ban and requested the government to review it, saying their operations would create multiplier effects on the country's economy and the welfare of local people.

Meanwhile, non-governmental organizations like the Mining Advocacy Network (Jatam) and The Indonesian Forum for the Environment (Walhi) have put their weight behind the law, by supporting the ban imposed by the Ministry of Forestry on the mining firms.

The NGOs said open-pit mining activities would greatly damage the environment in and around a mining sites and would displace local people from their land.

In addition, once a mining site was abandoned, it would be very difficult to rehabilitate the area, according to the NGOs.

According to Jatam, mining areas have reached 84 million hectares, or more than half of the country's total land. Thus, it is not necessary to allow mining companies to operate in conservation areas.

It added that the mining sector accounts for 10 percent of the destruction of the country's forest.

Conservation areas and protected forests now cover about 54 million hectares, according to government data.

Concerned ministries -- The Ministry of Energy and Mineral Resources, The Ministry of Environment and The Ministry of Forestry -- have been in talks to resolve the problem.

The Ministry of Environment has reportedly agreed to allow the companies to resume their operation, but the Ministry of Forestry has consistently opposed the idea.

However, the three ministries have agreed not to issue new licenses to new mining companies to operate in conservation areas.

Asking whether the government and the House would consider revising the current Forestry Law, Wimpy said the revision would depend on the House's will.

"Amending the law will be difficult and will take a long time," he added.

Separately, Golkar legislator M. Husni Thamrin, who is a member of the House's Commission VIII which oversees, among other things, mining affairs, said he preferred to suggest that his colleagues amend the Forestry Law.

"We must understand mineral resources are a gift from God for people. They might not exist in other locations.

"If a mine has potential, we can decide whether or not to exploit it to bring wealth to people," he said.

He added that should the government agree, the revision could be completed in two months.

However, according to Husni, the issue must be discussed carefully because protected areas are also needed to prevent flooding, erosion and other natural disasters.