Govt gives Lanna 3 months to fix problems

Ministry of Energy and Mineral Resources will give East Kalimantan miner PT.Lanna Harita Indonesia maximum time of three months to fix its mining areas before allowing the miner to resume production.

MS Marpaung, Director of Mines Technical and Environmental Affairs at the ministry told Petromindo.Com on Tuesday that the company?s production would remain halted until after the company improving condition at the mining site.

According to Marpaung, the company?s reckless mining operations have created areas that were unsafe for mining operations and to surrounding villages. The company had also failed to restore its former mining area, he added.

Marpaung said failure to comply with the government?s directive could cause the company to lose its mining license.

Lanna Harita Indonesia is a subsidiary of Thai firm Lanna Resources. The company said in June 2008 to plan to produce 1.8 million tonnes from the mine, most of which would be exported to India, Taiwan and Thailand. (godang)