Citra Palu Minerals allowed to mine in protected forest

A government special team has decided to allow PT Citra Palu Minerals to mine in the Tahura protected forest in Central Sulawesi province, according to a senior official at the directorate general of geology and mineral resources, R. Sukhyar.

He told Petromindo.com on Wednesday that Citra Palu is now only required to obtain an approval from the local Palu mayoralty administration for the ministry of forestry to shrink the size of the protected forest area.

This will the first company to be allowed to conduct open-pit mining activity in protected forest area since the enactment of Forestry Law No. 14 in 1999. Many mining companies have long called on the government to revise the law. Even Minister of Mineral of Energy and Mineral Resources Purnomo Yusgiantoro had said that mining investment in the country would significantly drop unless the government revise the ruling.

There are around 150 mining companies operating in the country?s 11.4 million ha protected forest.

Among of the high profile companies which have delayed mining activities due to forestry law are PT Gag Nickel on Gag Island in Papua province, and Newcrest.

Sukhyar said that that it was likely that the two other companies would also be soon allowed to resume mining activities in protected forest.(Godang)