Gov't to hold meeting to discuss BHP-Billiton's nickel project

Government will hold another meeting to discuss the fate of BHP-Billiton?s nickel project in Gag Island, Irian Jaya that has been stranded due to forestry regulations that forbid mining in protected forests.

Director general of geology and mineral resources Wimpy S. Tjetjep told Petromindo.Com Wednesday that the meeting would take place on Friday, Sept. 7 and would be attended by officials from ministry of forestry, ministry of environmental affairs, and Irian Jaya local government.

?We are hoping to get positive recommendation that will lead to permission to exploitation of protected forest on Gag Island,? said Wimpy.

BHP-Billiton and state miner PT Aneka Tambang Tbk started exploration on the island in 1996 through PT Gag Nikel and received the mining contract of work from the government for their joint venture in February 1998.

BHP has 75 percent shares in Gag Nikel, while Antam has the remaining 25 percent

But, Gag Nikel was forced to suspend activities on the island following the issuance of the Forestry Law No. 41/1999, which bans open-pit mining in protected forests, and the announcement by the ministry of forestry that the contract area was protected.

Gag Nikel had spent US$50 million for exploration activities and had found 240 million tons of high-grade nickel and cobalt resources when it suspended its activities on the island several years ago. (godang)