Bima Regent revokes SMN mining business license

By Bernard Loebs

According to the Energy and Mineral Resources Minister Jero Wacik, Bima Regent Ferry Zularnaen has revoked the mining business license (IUP) of PT Sumber Mineral Nusantara (SMN) amid fierce objections to the mining operation from the locals.

?I heard that the Regent has just revoked the license,? the Minister said on the sidelines of a 100-day performance presentation in Jakarta Thursday.

Oposition from some Bima residents towards SMN, the holder of exploration license issued by the Regent in 2010, continued to make headlines. On Thursday, protesters set the Regent?s office on fire.

Thamrin Sihite, Director General of Mineral and Coal at the Ministry, said that he immediatelty made contact with the Regent following the burning. He said at first, the Regent was reluctant to revoke the license but he managed to talk him into it. ?At last, the Regent agreed to revoke it.?

He said SMN could return to operation if the residents support it. So, he said, socialization is the key.

Minister Wacik agrees, saying:?Local administrations have to be carefull in granting mining licenses. Socialization to the community has to be done intensively.?

SMN, who claimed to have abided by all existing regulations and denied any wrongdoings, is now postponing a survey being carried out by 10 geologists. It has also halted its exploration spending which has reached Rp 18.4 billion since 2008.

Editing by Dadan Wijaksana