House commissions to meet on resumption of mining projects in forest areas

Two House commissions have yet to agree with each other on whether the government could allow mining companies to resume their projects in protected forest areas, Suara Karya daily reported Friday.

The paper quoted Julius Bobo, chairman of a House sub-committee dealing with energy and mineral resources, as saying on Thursday that they would have to discuss the issue with members of House Commission III in charge of forestry affairs. The sub-committee is part of House Commission VIII responsible for energy and mineral resources, environment and science and technology affairs.

?We will hold meetings with Commission III to resolve the issue because mining investors want a guarantee of legal certainty for resuming their operations,? Julius told reporters after chairing a meeting at the House with senior executives of four mining concession holders namely PT Gag Nickel, PT Weda Bay Nikel, PT Citra Palu Mineral and PT Nusa Halmahera Mineral.

Julius added: ?In principle, mining companies must be allowed to continue their operations.?

Projects of the four firms were among the 150 mining projects suspended by the government following the issuing in 1999, Law No. 41/1999, which bans open pit mining in protected and conservation forest areas. The projects of the companies allegedly overlapped forest areas.

Meanwhile, Commission III chairman Awal Kusumah said separately on Thursday that, in principle, they were against open pit mining in protected forest areas. ?We need to further discuss about Law No. 41/1999,? he said.

PT Gag Nickel president director Suhardjito Sidik said they would urge the government and the House to soon resolve controversies over their projects. He said his company had invested US$40 million in its mining project on Gag Island in Papua province.

Citra Palu president director Subandoro said that it had spent around $100 million on its projects in Central and South Sulawesi.

Meanwhile, the Ministry of Forestry said this week six companies could be allowed to resume their projects because they turned out to be, wholly or in part, located in production forest areas according to a study conducted by the ministry.

The ministry said the companies were PT Gag Nickel, PT Weda Bay (Maluku), PT Nusa Halmahera (Maluku), PT Galuh Cempaka (South Kalimantan), PT Jorong Barutama (South Kalimantan), and PT Barisan Tropical Mining (South Sumatra). (*)