Banyuwangi Minerals to mine gold in East Java

PT Banyuwangi Minerals, a company based in Jakarta, is applying for a license to mine gold in some 150,000 ha mining site in Banyuwangi, East Java.

A source said that the Banyuwangi district administration had already issued the license or contract of work to the company last month.

But the source said that this was against the existing law because the authority to issue the license was actually in the hands of the ministry of mineral resources and energy.

He explained that the Banyuwangi authority will only have the authority starting early next year after the full implementation of the regional autonomy policy.

Under the new regional autonomy policy, provincial and district administrations are given the power to manage their own natural resources including mining.

The source also said that other district administrations in East Java were set to follow the steps of Banyuwangi to issue mining license prior to the implementation of the autonomy policy. (R. Amoros)