Antam troubled in Southeast Sulawesi

State-owned gold and nickle company, PT Antam Tbk via Lubis, Santosa & Maulana Law Office, has on Wednesday announced its case against the regent of North Konawe, Bisnis Indonesia daily reported.

Antam claimed to have acquired IUP licenses to mine nickel ores in a 6,213 hectare concession area in Tapunopaka and 16,920 hectare in Mandiodo, North Konawe Regency of Southeast Sulawesi since 2010, which is valid until 2030.

Antam claimed to have spent up to Rp 272.6 billion worth of investment from the year 2000 in both concessions, including developing the Nickel Pig Iron project in Mandiodo, one of the key projects mentioned within the government economic development acceleration master plan (MP3I).

However, according to the company, the Regent of North Konawe has then released other mining licenses for areas within both concessions in 2011 to PT Sriwijaya Raya and PT DIPM.

The Regent then ordered Antam to stop production, empty both concession areas before March 23 the latest on the basis of Supreme Court order, and threaten to revoke Antam's IUP permits.

The Supreme Court order, according to Antam, did not oblige Antam to stop its production. It urged the Regent to allow the company to continue its production instead.

Antam's legal battle against the North Konawe Regent is still on going. (*)