Govt to shrink the size of coal mining sites of foreign firms

Minister of Mines and Energy Susilo B. Yudhoyono will reduce the size of coal mining sites controlled by foreign coal companies operating in the South Kalimantan province and handed them over to the traditional miners, according to a local activist.

Head of the South Kalimantan chapter of the Association of People's Mining (Aspera) Endang Kusumayadi said that the coal mining sites in the province had been mostly controlled by two foreign firms: PT Arutmin Indonesia and PT Adaro which respectively managed 70,000 hectare and 34,000 ha with a concession period of up to 30 years.

But Endang said that after 12 years in operation, Arutmin had only managed to exploit around 5,000 ha, while Adaro which had bee in operation for eight years had only exploited around 500 ha.

"This is not effective to support the development of the local economy," Endang was quoted by the local Kapos daily.

Endang was speaking to press following a meeting with Susilo recently.

Endang said that the government had yet to decide the size of the reduction of the coal mining sites of the foreign firms. He said that this has to be decided together with Arutmin and Adaro.

He said that Susilo had promised to hand over the reduced mining sites to the traditional miners grouped under Aspera.

Endang said that traditional miners had been involved in illegal mining activity because they've been facing difficulties to obtain mining sites because the sites had mostly been controlled by Arutmin and Adaro.

Endang also said that Susilo promised to immediately launch a new regulation in which the issuance of mining license would only need the approval of local administration, no the central government any more. (*)