East Kalimantan?s regency council slams Bukit Baiduri over contract area

The regency council of Kutai Kertanagara, East Kalimantan slammed coal mining company PT Bukit Baiduri Enterprise for expanding its contract area without any permission form the local authorities, local daily Kaltim Post reported Wednesday.

Syahranie, a commission head of the council, said Tuesday the company?s move to expand its contract area was unacceptable because it was based on the permit issued by the central government which had no longer any authority to issue such license under the Autonomy Law No. 22/1999 and the local below.

?The permit (for the expansion) was issued by the directorate general of geology and mineral resources (at the ministry of energy and mineral resources), while the central government no longer has any authority to regulate mining companies in Kutai,? he said.

Syahranie, who along with follow councilors recently made a visit to the company?s coal mines, also slammed Bukit Baiduri for failing to protect the environment in its operating area.

He said the company had failed to reclaim its former mining pits and let them look like lakes.

The paper said expansion of contact area by Bukit Baiduri had angered nearby coal company PT Gerbang Daya Mandiri, which claimed it lost some of its contract area due to the action.

Gerbang Daya?s operational director Subiakto said the company had initially licensed to operate on a 4,270 hectares of land but the government had cut the contract area to 1,761 hectares when it asked for the permit to start operation. (*)