House to summon Inco for not developing mining areas

House of Representatives (DPR) will summon the top management of nickel mining company PT Inco for not developing its mining area in Central Sulawesi, a legislator said.

A member of the House Commission VII in charge in energy and mineral resources, Sugihono Karyosuwondo said on Wednesday that the company had been in operation for nearly 40 years in the province but it had little contribution to the people?s welfare because the larger part of the concession area were left idle.

?The company only developed 6,000 hectares of its mining areas. Previously the company said the mining areas were not developed because the price of nickel was too low to cover mining costs. Now the price is high,? he said.

Sugihono said that the local people had asked the government to force the company to return its mining areas so that the people could use them for farming activities.

Meanwhile, Christian Rongko, an assistant of the regent of the Morowali regency, where most of Inco?s mining areas were located, said that the mining contract of Inco should be reviewed especially related to the size of its concession area and its commitment for the local economy.

According to Inco, it has returned several mining blocks to the government at the end of December, 2009. The blocks include Malupulu, Torobulu, Lasolo dan Paopao, covering an area of 28,000 hectares or 12.8 percent of its total concession area. (giok)