Govt, House figure out solution to mining concessionaires' problems

The government and the House of Representatives will likely succeed to devise a way out of the problems currently faced by mining concession holders in protected forest areas, a house member told Petromindo.com on Wednesday.

?There would be solution to the problems. We will seek an escape clause for them, but I can not tell what it would be like,? said Priyo Budisantoso who is member of the House commission III in charge of forestry affairs.

Several Commission III members and those from House commission VIII in charge of energy and mineral resources on Wednesday met with Energy and Mineral Resources Minister Purnomo Yusgiantoro and Forestry Minister M. Prakosa.

Their behind-closed-door discussion aimed to address confusion among mining concession holders who had been affected by a law issued in 1999 which bans open pit mining in several protected forest areas. The law was enforced only recently.

No less than 150 mining projects with total investment of about US$3.2 billion might be suspended if the law is not amended.

Priyo said the results of their discussion would be further deliberated in a joint plenary session of the two House commissions. But he did not say when. (Leo)