HSS regent vows to press ahead with plans to stop coal mining activities

The Hulu Sungai Selatan (HSS) regency in South Kalimantan vowed to press ahead with plans to impose a moratorium on coal mining activities in the region despite objection from the Ministry of Energy and Mineral Resources, the Kompas daily reported on Thursday.

HSS Regent Muhammad Sapi'i said that an investigation conducted by a special team appointed by the administration had found various evidence that both coal mining firms with permits and those operating illegally had caused damages to the environment.

"At least four bridges worth about Rp 500 million have been damaged due to coal mining activities," he said.

In an apparent bid to appease mining investors and as protest to the HSS policy, Minister of Energy and Mineral Resources Purnomo Yusgiantoro told the press earlier that the moratorium threat was primarily aimed at illegal coal miners which have caused serious damage to the local environment. The threat would not affect coal supply from the area.

But Sapi'i is determined that the temporary closure would also apply to legally operated coal mining, which Kompas said was supported by a number of local non-governmental organizations.

Kompas quoted Sapi'i as also saying that the current coal mining contract of work (PKP2B) fails to benefit the local government as the system would only provide the administration with a revenue of only Rp 2,850 per ton. He said that the small revenue contribution (under the current arrangement set by the central government) suggested that the coal mining operation caused more harm than benefit to the regency.

The paper quoted the official as saying that the moratorium threat would also serve as "a lesson to the central government."(*)