Illegal mining still operating in Ombilin

West Sumatra Governor Zainal Bakar said illegal coal mining operations in Ombilin, West Sumatra, were getting worse in line with increased regional autonomy as local administrations did not care about law enforcement and environmental protection, Kompas daily reported on Thursday.

The governor himself encountered Illegal mining activities, using heavy equipment, at a concession area belonging to state-owned coal mining firm PT Tambang Batubara Bukit Asam's (PTBA) Ombilin mining unit.

Zainal said he had urged the Sawahlunto administration that oversees Ombilin, and also PTBA to investigate who were behind those illegal miners. But until now, reports said that illegal mining activities in Ombilin remained unobstructed.

"If there are security personnel who play the actions without considering business ethics, moreover, if they disguise themselves as people's miners, please report them to their superiors," he said.

Zainal said the contribution of Ombilin coal mining operations to West Sumatra?s economy was still very low, but they were surely beneficial for people in the surrounding areas and contributed significant revenues to the West Sumatra administration.

Coal mining contributes only 1.4 percent to the province's gross regional domestic products, compared to the 5.9 percent contribution from the whole mining sector.

Nevertheless, the value of coal exports from West Sumatra is relatively high, just below exports of rubber, logs and cements.

In 1999, West Sumatra coal export value reached US$22.730 million, accounting for 10 percent of the province's total export revenue.

Coal mining sector also gives significant contribution to the West Sumatra administration's local revenue. Coal mining sector contributes Rp 7.16 billion in royalties and various levies to the 1999/2000 provincial budget, or 16.23 percent of all local revenues collected in that fiscal year. (*)