House passes mining bill into law

The House of Representatives passed on Tuesday the mining bill into law after years of deliberation and despite protests from several factions.

The new legislation, which will replace the 1967 mining law, will fill in the legal vacuum in the mining sector caused by the introduction of local autonomy in 2001

Three factions ? the National Awakening Party (PKB), the National Mandate Party (PAN) and the Justice and Prosperity Party (PKS) ? walked out the plenary session after failing to push the session to revoke the article of the law that allows the existing contract of work (CoW) holders to continue their operations using their existing contracts until the end of their contract period.

?While new companies will face tough rules, the old companies, which are over exploiting, continue enjoying incentives until the end of their operations,? Zulkifli Halim, the spokesman of PAN, said while reading the faction?s statement during the plenary session.

Members of the three factions walked out of the meeting when Minister of Energy and Mineral Resources was about to give his speech.

Seven factions read statement to support the law during the plenary session. The factions are the Golkar, Indonesian Democratic Party-Struggle (PDI-Perjuangan), Democrat, Development Unity, Prosperous and Peaceful, Star Reform Pioneer and Star Reform parties. (Godang/Bernard)