Govt to provide incentive for underground mining

The government will provide incentive to push coal mining companies to implement underground mining instead of open pit mining in their operation, the director of coal mining at the ministry of mineral resource and energy Suryatono was quoted by the Kapos daily in South Kalimantan as saying.

Suryatono said that the change into the underground mining system was part of efforts to avoid damage to the environment.

He said that the government was considering to lower the coal royalty 7 U.S. cent per ton of coal in underground mining system from 13 cent per ton in open pit mining system.

Suryatono, however, admitted that not all mining sites in the country were suitable for underground mining system. He pointed out that the sites of coal mining firm PT Adaro Indonesia in Hulu Sungai and Tabalong regencies in South Kalimantan were not suitable because of the geological condition. (*)