Government suffers loss of 4 million tons of coal

The government suffers a loss of at least 4 million tons of coal a year due to illegal mining operation, in addition to the serious environmental damages caused by such operations, according to Director General of Geology and Mineral Resources, Wimpy S. Tjetjep.

He acknowledged that many villagers were forced to involve in illegal activities for a living. But many investors then financed their activities causing a serious environmental problem.

"The government has tried to reduce such illegal activities by forging partnership with coal mining companies," he said. "By involving them in legal mining activities, their activities could gradually be eliminated," he added.

According to the executive director of the Indonesian Mining Association, Paul Louis Coutrier, said that the illegal mining operations also caused a loss to the local government because the illegal miners did not pay any tax.

"Besides, the illegal mining operation is not carried out through appropriate mining procedure, causing major environmental destruction," he added.(*)