Illegal mining causes North Sulawesi to suffer some Rp 6.8b in tax losses

The rampant illegal mining activity in 14 areas in the North Sulawesi province has caused the local administration to suffer at least Rp 6.8 billion (US$1=Rp 9, 300) in annual tax income losses, the local Manado Post daily reported.

The paper said that according to the data provided by the local office of the ministry of mineral resources and energy, the gold production of the illegal miners last year totaled 114.22 Kg per month or 1,370 Kg per year.

The paper said that with an average gold price of Rp 50,000 per gram, the total value of gold illegally taken by the miners reached Rp 68.54 billion.

The paper said with an income tax rate of 10 percent, the tax losses suffered by the local administration reached Rp 6.8 billion. (*)