Hundreds of coal mining firms stop operation in S. Kalimantan

Hundreds of coal mining companies in South Kalimantan have halted operation due to the government?s policy obliging the companies to obtain a permit for the utilization of forest areas, which is not only time consuming but also costly, Media Indonesia reported Friday.

South Kalimantan?s chapter of the Community Mining Association (Aspera) Sholihin said in Banjarmasin on Thursday that out of 250 coal mining firms that hold KP type of contracts, only around 75 were still in operation, causing coal production to decline from 25 million tons to three million tons per year.

According to Sholihin, the Forestry Ministry?s policy that obliges mining firms to have a permit for the utilization of forest area took effect in 2005. ?The process of obtaining the permit takes times and causes the mining firms to spend much money on that,? he said, adding that many could not afford the permit because they were small-scale companies.

Sholihin further said that several coal mining firms stopped operation also due to the government?s intensive efforts to discipline mining companies.

He said that the coal mining firms hold KP and other permits issued by local administration. Each firm has invested around Rp 9 billion in the coal mining activities, starting from obtaining a permit, building infrastructures such as roads and a harbor, exploration to exploitation. (*)