Fate of mining companies to be decided in Bali

A decision on which mining companies to be allowed to resume open-pit mining activities in protected forest will be made early next month during a gathering between the government and stake holders of mining and energy companies in the resort island of Bali, according to Minister of Energy and Mineral Resources Purnomo Yusgiantoro.

?The announcement (on which companies will be allowed to proceed) will be made during a gathering between the government stake holders of energy companies in Bali,? Purnomo was quoted by the Bisnis Indonesia daily as saying on Wednesday.

Many mining companies had been put in limbo after the ministry of forestry issued Law 41/1999 which banned open pit mining activities in protected forest areas. Many of the mining sites which were previously not considered as protected forest immediately turned into protected area following the issuance of the law.

The mining companies, which had invested a lot of money and had acquired mining license prior to the issuance of the law, had protested the law.

In a bid to resolve the problem, last year the government proposed some 22 mining companies to allowed to proceed with their open-pit mining operations. But until now, the House of Representatives has yet to approve the proposal.

Purnomo told the paper that the government is considering three options to allow the mining companies to resume their projects. These includes the revision of Law No. 41/1999, issuing a special government regulation to replace the law, and using Law No. 5/1990 on natural resources conservation. He did not elaborate.

But in a separate interview with the paper, legislator Iwan Prayitno aknowledged that not all of the 22 mining companies proposed by the government would be allowed to resume their open-pit mining activities.

He said that the House would make a decision based on several criterias including the economic advantage of the mining firm to the particular area, the track record of the particular mining firm, and the support of the local government.

?Maybe only a limited number of companies will be able to surpass the criteria,? he said.

The 22 mining companies include PT Nusa Halmahera Minerals (in North Maluku), PT Weda Bay Nikel (in Papua), PT Gag Nikel Mineral (Papua), PT Citra Palu Mineral (Central Sulawesi), PT Barisan Tropical Mining (South Sumatra), PT Freeport Indonesia (Papua), PT NabireBakti Mining (Papua), PT Galuh Cempaka (South Kalimantan), PT Meratus Sumber (South Kalimantan), PT Newmont Nusa Tenggara (Mas Nusa Tenggara), PT Newmont Minahasa Raya (North Sulawesi), PT International Nikel Indonesia (Southeast and Central Sulawesi), PT Natarang Mining (Lampung), PT Jorong Barutama Greston (South Kalimantan), PT Riau Baraharum (Riau), PT Indominco Mandiri (East Kalimantan), PT Bahari Cakrawala Sebuku (South Kalimantan), PT Westralian Atan Minerals (East Kalimantan), PT Kelian Aquatorial (East Kalimantan), PT Karimun Granit (Riau), PT Arutmin Indonesia (South Kalimantan), and PT Meares Soputan Mining (North Sulawesi).