Gag Nikel and two other firms allowed to resume mining projects

Six mining companies including PT Gag Nikel, PT Weda Bay and PT Nusa Halmahera have been allowed to resume their mining operations after being suspended for almost two years because their concession areas overlapped with protected forests, Koran Tempo reported on Tuesday.

Forestry Minister Mohammad Prakoso said in Jakarta that the three companies had been formally allowed to resume mining activities except in certain parts of their mining concessions, which still needed protection.

Minister Prakoso said that the three mining companies were allowed to continue their activities after studies showed that the status of some part of their concessions could be changed into a limited productive forests.

The other three companies including PT Barisan Tropical Mining in South Sumatra, PT Jurong Barutama Greston in South Kalimantan and PT Galuh Cempaka also in South Kalimantan have been allowed to carry out mining activities in their entire concession areas.

According to the ministry?s senior official the three companies were allowed to carry out mining activities in their entire mining locations because studies showed that none of their mining areas overlapped with protected forests.

At least 22 mining companies whose concession areas overlap with protected forests have been asked to stop their activities following the introduction of a new forestry law in early 2002. The law has formally prohibited open-pit mining areas in protected forests. (*)