EXCLUSIVE: Minister stops receiving applications for mining contracts
Thursday, October 26 2000 - 06:30 AM WIB
The ministry of energy and mineral resources had stopped receiving new applications for mining contracts of work (COW) in anticipation of the implementation of the autonomy law on January 2, 2001, a top official of the ministry said on Thursday.
Director general of mining Surna Tjahja Djajadingrat told Petromindo.Com under the autonomy law, the regional administrations would take over the ministry's right to issue licenses for mining companies.
Surna said the ministry has drafted a regulation on mining licensing in accordance with the autonomy law and it expected to issue the regulation on November 6 this year.
"Until the autonomy law is implemented, the directorate general of mining would no longer accept new applications for mining licenses, except for licenses for mining companies, which had conducted exploration, to conduct feasibility study," Surna said.
Mining investors have voiced concerns that mining licensing process would no longer be smooth if it is handled by the regional administrations, citing the lack of skilled and experienced human resources in the regions.
They have asked the central government to retain the licensing right until the regions are prepared to take over the rights.
However, the government appeared to be determined to transfer the licensing right on the implementation of the autonomy law.
Minister of energy and mineral resources Purnomo Yusgiantoro earlier said the directorate general of mining would be abolished prior to the implementation of the autonomy law as the regions would take over its function of licensing and supervising mining industry.
He said the ministry would only have three directorate generals, that is directorate general of geology and mineral resources, directorate general of oil and gas and directorate general of electricity. (Godang)