Govt approves mining on Gag island

The government may finally allow mining activities on the nickel-rich Gag Island in the Papua province following approval from a team of five ministers, according to Minister of Environment Nabiel Makarim.

But Nabiel said on Wednesday that a formal decision on the mining policy had yet to be issued.

?We?re seeking a way out because before the area was turned into protected forest, there was already government permit to conduct mining activities,? he told reporters on the sidelines of a hearing session with the House of Representatives commission VIII on mining and energy.

But Nabiel warned that the government would not tolerate mining activities in other protected forests.

Nabiel is one of the five ministers team assigned last month to decide on the mining activities on the Gag Island. The other ministers include minister of forestry, minister of mineral resources and energy, state minister for the acceleration of development in the eastern part of Indonesia, and state minister of development planning.

The special team has given the results of its study to the coordinating minister for the economy.

According to forestry law issued in 1999 but was only effective recently, open pit mining operation can not be conducted in protected forest. The law, however, has raised 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 Billiton of Australia, which will cooperate state-owned general mining company PT Aneka Tambang to develop a giant nickel mining project on the Gag island. (Amoros)