Govt to honor contracts before the issuing of environment law: Purnomo

The government is determined to honor mining contracts signed before the issuing in 1999 of a law which prohibits mining activities in protected forest areas, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Tuesday.

?The Indonesian government had signed the mining contracts. The contracts had taken the form of law which applies on both parties,? Purnomo told reporters after addressing a seminar on fuel price hike in Jakarta.

Purnomo was responding to Monday?s remarks of Minister of Forestry M. Prakoso that the government would not change its decision to ban open-mining activities on protected forests despite protests from some mining firms. The government?s stance is based on Law No. 14/1999, Prakoso argued.

Purnomo said on Tuesday Indonesia not necessarily amends the law.

?All we want is that the contracts signed before the law took effect must be honored,? the minister said.

Purnomo added the government needs to review the status of certain protected forests because their condition no longer fulfill standard requirements.

Among the mining projects effected by Law No. 41/1999 are BHP Biliton?s Gag island nickel project in Papua, Strand Minerals? Weda Bay Nickel-Cobalt project in Halmahera, North Maluku, Newcrest?s Gosowong gold expansion project in Maluku, and Rio Tinto-Newcrest?s gold project in Central Sulawesi. (Leo)