Australian miners await clarification of forestry law

Australian miners are waiting for the clarification of the controversial forestry law before commencing their projects in Indonesia?s mining sector, according the chairman of the Indonesia-Australia Business Council, Noke Kiroyan.

Speaking to reporters after a meeting with the visiting Australian Prime Minister John Howard, Kiroyan said that although the Australian investors remained committed to investing in Indonesia, they needed to wait for the clarification of the law to begin their new projects.

He said that the new forestry law, which was introduced three years ago, still caused controversy mostly to all mining operators especially those related to the status of mining permits issued before the enforcement of the law.

At least 150 mining projects with total investment of about US$3.2 billion might be suspended as they could violate the new Forestry Law which prohibits open-mining activities on protected forests. Australian companies own some of the projects.

116 projects are still on exploration stage, 34 projects have been engaged in production, while their contribution to the state reaches $964 million

The Ministry of Energy and Mineral Resource, and the Ministry of Forestry have formed two integrated teams to determine the fate of the mining projects. (*)