Govt asks House to approve 22 miners resuming projects on protected forests

The government on Monday formally asked for approval from the House of Representatives (DPR) that 22 mining investors resume their projects which had been suspended following the government?s move to ban open-pit mining in protected forests areas.

The 22 companies had signed contracts to explore and mine for minerals on protected forests before the issuance of Law No. 41/1999 which bans open pit mining in such areas. They were among the 150 companies which had signed similar contracts before the law was issued in 1999.

Coordinating minister for the economy Dorodjatun Kuntjoro-Jakti said people need not worry too much about environmental damages caused by mining activities.

?We had got field reports that forest damages caused by mining activities were relatively minor,? Dorodjatun told a joint hearing with DPR?s Commission III and Comission VIII respectively in charge of forestry, and energy and mineral resources affairs.

Moreover, Indonesia must honor contracts awarded before the issuance of Law No. 41/1999 unless investors file complaints against the country in international arbitration panels, Dorodjatun said.

Dorodjatun was accompanied in the hearing by Minister of Energy and Mineral Resources Purnomo Yusgiantoro, Minister of Forestry M. Prakoso, State Minister of Environment Nabiel Makarim, and State Minister for the Development of Eastern Indonesia Manuel Kaisiepo.

Dorodjatun said further one article of Law No. 41/1999 allows the government and the House to change the status of forest areas.

The 22 investors had signed coal mining contracts (PKB2B), non-coal mining contracts (KK) and mining licenses (KP). Under existing laws, KK is awarded to foreigners, while KP is reserved for sate companies, Indonesian private companies and Indonesian nationals.

The companies include copper and gold miners Freeport Company Indonesia and Freeport Indonesia Company, nickel miner PT Gag Nikel, coal mining company Jorong Barutama Greston, gold miner Newmont Nusa Tenggara, state general mining firm PT Aneka Tambang Tbk and coal miner PT Arutmin Indonesia.

Freeport Company Indonesia and Freeport Indonesia Company, units of US gold mining giant Freeport McMoRan Copper & Gold, had been awarded contracts to mine for copper and gold in six areas in Papua Province which together measure for no less than 202,950 hectares. Together, the firms had spent around US$5.1 billion for their projects by 2001.

PT Gag Nikel?s contract is for 13,136 hectares of land in Sorong Regency, Papua. The firm had invested $40 million on its project by 2001. The company is a joint venture between Australian mining giant BHP Billiton and Indonesia?s Aneka Tambang.

PT Newmont Nusa Tenggara had been awarded contracts to explore and mine for gold on 116,900 hectares of land on Sumbawa Island, West Nusa Tenggara. Newmont had used around $2.7 billion for financing its projects. Newmont Nusa Tenggara is 56.25 percent owned by US mining giant Newmont Mining Corp, and 35 percent by Sumitomo Corp. of Japan.

Meanwhile, Monday?s hearing between ministers and House commissions failed to turn out conclusions. The two parties planned to meet again over the same issue. (godang/leo)