Association protests suspension of 425 mines in S. Kalimantan

By Godang Sitompul

The Association of Mining and Contractor Companies (Aspektam) protested a decision by the South Kalimantan provincial administration to suspend the operations of 425 mines in the province for failing to pay reclamation funds.

Head of Aspektam South Kalimantan branch, Solihin said on Sunday that the move would undermine investment climate in the province and cause massive layoffs.

He added that the provincial administration should have first communicated the problem with the miners and give warnings before taking the decision to shut down their operations.

Solihin also said that the miners claimed they have paid the required reclamation funds around Rp 45 million per hectare when they first get the IUP mining business license and when they requested for an extension of the license.

Meanwhile, Director General of Coal and Mineral at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono said on Monday the ministry supported the decision of the provincial administration as the miners have failed to pay their financial obligations.

Editing by Reiner Simanjuntak