Galuh Cempaka may soon resume diamond mining project in S. Kalimantan

Mining company PT Galuh Cempaka may soon resume its diamond mining activities in South Kalimantan, which were suspended in late 2001, local daily Banjarmasin Post reported Monday.

The company was awaiting for the license from the central government to mine for diamond in the Cempaka Banjarbaru district in South Kalimantan, Joko Hardiono, head of the Banjarbaru city office of mining and environmental affairs, was quoted as saying over the weekend.

Galuh might start mining for diamond in the district in six months, Joko said. Its mining concession would cover 300 hectares of land, he added.

The company reportedly had started its mining operation in Cempaka Banjarbaru for about a year before the project was suspended following the implementation of the forestry law. The law, issued in 1999, bans open pit mining activities in protected forests.

Galuh is jointly owned by state mining firm PT Aneka Tambang (20 percent) and BM Diamondcorp of Canada (80 percent). (*)