Govt reviewing authority to issue mining permits

The government is continuing to review the transfer of the central government?s authority to issue mining permits to provincial administration, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said over the weekend as reported by Suara Pembaruan daily.

The review had been prompted by complaints from investors that mining contracts signed with provincial administration were not bankable, Purnomo said.

?That is the reason for us to review the policy before deciding whether the authority to sign mining permits, or contracts of work, be returned to the central government, or whether the central government will only guarantee contracts signed by provincial administrations,? the minister said.

The central government, following the implementation of regional autonomy laws, has delegated its authority to issue mining permits to the provincial authorities. Investors said however that they would find it easier to seek loans for their operation if their mining contracts were signed by the central government, and not the provincial administration.

Purnomo did not say however whether authority to sign mining permits was included in the mining bill being drafted by the government. (*)