C. Kalimantan councilors try to find solution for troubled Maruwai coal mine operator

A special team of Central Kalimantan?s Legislative Council comprising of the council?s three senior members inspect the concession area of Australia-based coal mine operator PT Maruwai Coal (MC) which is facing closure due to the overlapping of its mining site with the protected forest area, Banjarmasin Post reported on Friday.

The senior legislators would visit the company?s concession area in Murung Raya regency for three days to explore the possible solutions that could prevent the company, which has been operating for years in the area, from being closed.

Bambang Suryadie, a member of the Commission D of the council, said on Thursday that the mining company had stopped its activities since the introduction of the new forestry law last year which banned open-pit mining operations in forest conservation areas.

The law has, however, sparked controversies because along before the introduction of the law, many mining companies have been awarded contracts to develop mineral resources, gas or oil in areas that have been categorized as protected forests.

Bambang said the operation of the company, which has brought a significant contribution to the local economy, should be continued. "If the condition of the protected forests in the mining area has been deforested, it will be better to change its status into a productive forest," he said.

Maruwai which operates some 8,634 hectare mining area has invested about US$8 million to carry out exploration and production activities. There is an indication that about 7,721 hectares of the company?s concession area overlap with the protected forests. (*)