Thu, 13 Feb 2003

Sea sand mining firms face bankruptcy

BATAM, Riau: The Association of Sea Sand Mining Companies in Riau have rejected the central government's policy to temporarily halt sand exports to neighboring Singapore, saying it could lead to bankruptcy.

It claimed the ban on the exports could also bring losses to local people.

Abdullah Gosse and Bachtiar Mustafa, both caretakers of the association, urged the government to review the policy issued on Jan. 23.

Gosse said around 140 mining companies had stopped operations and incurred billions of rupiah in losses since the exports were banned.

"Mining companies had each spent at least Rp 1.5 billion (US$174,000), but all of them have stopped operations," he said.

However, environmentalists have said exports of sea sand has continued to Singapore despite the temporary ban.-- Antara