Govt, House agree to control regions in issuing mining licenses

The government and the House of Representatives have agreed to control the regions in issuing mining licenses as many regional governments, driven by the needs of revenue, have issued numerous licenses without considering its impacts on the environment and the credibility of the companies that ask for the licenses.

It was one of the points that have been agreed upon by the House and the government during the ongoing debates on the draft law on mineral and coal resources, according to Simon Sembiring, the Ministry of Energy and Mineral Resources? Director General of Mineral, Coal and Geothermal Resources.

?In view of the negative impacts of the autonomy law, there will be tighter and detailed rules (to be followed by regions in issuing mining licenses). There won?t be a total freedom as it is now,? Simon told reporters on Thursday on the sidelines of the debates on the bill.

The central government has transferred the management of natural resources, including mining resources, to the regions following the implementation of the autonomy law. They thus now have the right to issue licenses for mining companies ? a right that was previously controlled by the central government.

Simon said many parties had voiced concerns over the way the regional governments have exercised their new authority. They have even issued mining licenses over protected forests.

?Yesterday, we talked with the Ministry of Forestry. Hundreds of mining licenses have been issued over the areas that include protected forests, even national parks. The Ministry of Forestry have voiced concerns about it and asked us to revoke the licenses,? Simon said.

He said during the debates with the House, some legislators also voiced over the fact that many regional governments had issued licenses to companies that had not yet even received licenses to operate as companies. And these ?companies? have been allowed by the regional governments to start production.

According to Simon, the government and the House have agreed that the Mineral and Coal Resources Law, that will replace the 1967 Mining Law, will give the authority to the central government to revoke the mining licensing authority from certain regional governments if the latter fail to perform in exercising the authority.

The new law will also set out rules for regional governments in issuing mining licenses, including they must get permits from district heads and consider the impacts of the mining operations towards the environment. (Godang)