Govt may not allow Antam to resume Bahu Hulu nickel mining project in S. Sulawesi

The government may not allow state mining company PT Aneka Tambang Tbk (Antam) to mine for nickel in Bahu Hulu Island in South Sulawesi in compliance with a forestry law which prohibits economic activities on protected forests, according to a mining industry source.

The source told Petromindo.Com on Saturday that Antam?s Bahu Hulu mining contract had been awarded one month after the issuing in 1999 of the forestry law, Law No. 41/1999, which disallows investors to continue their open pit mining activities in protected and preservation forests areas.

In 2001, Forestry Minister M. Prakosa issued a policy to ban any mining activities in protected and conservation areas.

?It seems that the government will not allow Antam to continue its Bahu Hulu project,? the source said.

The forestry law provisions affected 150 mining concession holders including Antam.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro and several other ministers were against Prakosa saying that disallowing investors to continue their projects in protected and conservation forest areas would scare away other investors.

Antam, majority owned by the government, is listed on the Jakarta Stock Exhange and an Australian bourse. (godang)