Gag project still faces uncertainty despite approval

The fate of PT Gag Nickel?s mining project in Gag island, Papua still faces uncertainty despite the recent approval of an inter-departmental team to allow the project to go ahead, Bisnis Indonesia reported on Monday.

"We are still waiting for the decision of the Ministry of Forestry whether or not the Gag project could be allowed to continue," Suyartono, a technical director at the Ministry of Energy and Mineral Resources was quoted as saying.

He acknowledged that the team had allowed the continuation of the massive nickel mining project but he added that the operational activities could not be carried out without the written approval from the ministry.

PT Gag Nickel is one of 150 mining projects which occupies protected or conservation forests. The newly issued forestry law bans open-pit mining operation in protected or conservation forests. If not amended, these projects might be suspended.

Before finding a legal breakthrough, the government has found an inter-departmental team to determine the fate of the mining projects especially related to big projects such as PT Gag Nickel, PT Citra Palu Mineral, PT Weda Bay Mineral and Nusa Halmahera Mineral.

Suryartno said that the team was still hammering out the fate, PT Citra Palu, PT Weda Mat and Nusa Halmahera. (*)