Govt to withdraw regulation on mining moratorium

The government plans to revoke a circulation letter No. 08.E/30DJB/2012 of Ministry of Energy and Mineral Resources on moratorium of mining permit pending the issuance of new regulation on mining areas, Investor Daily reported on Monday.

"The directive had hampered many infrastructure projects especially toll roads," said Public Works Minister Djoko Kirmanto. He said that the decision to withdraw the regulation was made during a meeting of the presidential working unit for development supervision and control (UKP4).

According to Djoko, in several provinces, the local government had stopped the issuance of new mining permit as the follow up of the regulation on the mining permit moratorium. As the consequence, he said, many road contractors were unable to excavate soil for the road construction.

Djoko said that the mining permit moratorium would be reconsidered once the government received an approval from the House of Representatives on new mining areas in each province. (*)