Indonesia to exclude primary forests from new underground mining rule

Indonesia will exclude primary forests and peat land from a new underground mining rule following a moratorium recently signed under a $ 1 billion deal with Norway which will ban new permits on forest clearing in those areas, the forestry minister said on Monday.

?Underground mining will not be allowed in primary forests for two years although we have issued the regulation,? Zulkifli Hasan told reporters on the sidelines of Coaltrans Asia in Bali.

The ban on underground mining in primary forests may be in placed more than two years if the government decides to extend the moratorium, said Hasan.

President Susilo Bambang Yudhoyono signed the moratorium in mid-May which will ban issuance of new permits for logging or converting primary forests and peat lands starting May 20, as part of the deal with Norway. Under the agreement, Norway pledges $1 billion if Indonesia can cut greenhouse gas emissions from deforestation.

The moratorium is lauded by green groups but worries miners and plantation firms as it could slow expansion.

At the same time, the president also signed the long-awaited decree that will allow miners to carry out underground mining in the protected forest areas on May 19. The decree is expected to attract new mining investment and to benefit many mining firms including zinc miner PT Dairi Prima Minerals which is 80-percent owned by PT Bumi Resources Mineral ? a unit of Indonesia?s top coal producer Bumi Resources.

Protected forests are is forest areas which have been allocated to protect water system, preventing floods and ensuring fertility of the soil while natural primary forests are areas where trees have grown naturally for hundreds of years and have not been disturbed by any logging activities.

?Licenses for underground mining will be awarded selectively and miners must fulfill strict requirements when applying for underground mining permits,? said Hasan.

Under the underground mining decree, firms need to obtain a principal agreement from the forestry ministry which is valid for two years and a forest land-use permit from the same ministry which can be valid up to 20 years. Both can be extended.

The underground mining rule also aims at clarifying Indonesia's forestry law issued in 1999 that prohibited open-pit mining in protected forest areas but did not tell whether underground mining was allowed.(Fitri)