Future of 22 mining firms to be decided Thursday

The future of 22 mining investors, whose mining activities have been suspended following the implementation of the current forestry law, will be decided in a cabinet meeting scheduled for Thursday, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Tuesday.

Their concession areas had been suspected of overlapping with protected forests.

Purnomo estimated that mining activities in some of the 22 contract areas would be allowed. He did not mention them, however.

The Ministry of Forestry said earlier that six companies could be allowed to resume their mining activities in protected forest areas after a study conducted by the office concluded that their projects were, in whole or in part, located in production forest areas.

The six companies were PT Weda Bay and PT Nusa Halmera in Maluku, PT Gag Nikel (Papua), PT Galuh Cempaka (South Kalimantan), PT Jorong Barutama (South Kalimantan), and PT Barisan Tropical Mining (South Sumatra).

The current forestry law issued in 1999, Law No. 41/1999, disallows opening mining in protected and conservation forest areas. In keeping with the law, the government banned projects in such areas including those under licenses issued before 1999.

Purnomo said Tuesday that article 19, section 1 of the forestry law allows the government to change the status of forest areas not strategic for the maintenance of healthy environment, without House approval. (Alex)