Government to decide status of Gag island this week
Tuesday, February 19 2002 - 12:00 AM WIB
Director General of Geology and Mineral Resources at the Ministry of Energy and Mineral Resources Wimpy S. Tjetjep said the government would take a number of approaches to face any consequences that might arise if the mining project is finally banned.
?What ever the result, the government should prepare to face its consequence,? he was quoted as saying after attending a mining seminar held by the Jakarta American Club inJakarta on Monday.
Asked if affected companies would go to an international arbitrary to contest the decision, he said, ?It is possible, and the government should therefore be prepared.?
The forestry law, which was issued in 1999 but was enforced only recently, prohibits open-mining activities on protected forests. The law, however, has caused controversies because the ban also affects mining projects, which obtained their permits before the enforcement of the law.
At least 150 mining projects with total investment of about US$3.2 billion might be suspended if the law is not amended. Of the total projects, 116 are still on exploration stage, and the other 34 projects have commenced production. Among them is BHP of Australia, which will cooperate state-owned general mining company PT Aneka Tambang to develop a giant nickel mining project on the Gag island.
Separately, Minister of Energy and Mineral Resources Purnomo Yusgiantoro confirmed on Monday that the clarification of the status of the Gag island was the government?s main priority, Satunet reported. He added that his ministry and the Ministry of Forestry would cooperate to solve the problem.
According to him, there are two possible ways that could be taken to deal with licensed mining projects on protected forests. The first way is to form an integrated team which will decide whether the mining projects could be continued or not, or by amending the law. But he said that the later approach would take time.(*)