Major miners engaged in land conflict problem

The Ministry of Energy and Mineral Resources said that 16 mining companies holding the so-called mining contracts of work (KK) have been engaged in land conflict problem with other mining firms holding the mining business permits (or better known as IUP) issued by local governments, Bisnis Indonesia reported on Friday.

The KK contracts are issued by the central government.

The paper said, quoting ministry data, the 16 mining firms troubled with the land conflict problem include gold and copper giant PT Freeport Indonesia, nickel giant PT Vale Indonesia Tbk, PT Weda Bay Nickel, and gold miner J Resources Bolang Mongondow.

Freeport, for instance, has been engaged in land conflict with two other mining firms holding IUP permits due to overlapping of permits issued by the Papua provincial administration and the Mimika Regency administration in the province.

Meanwhile, PT Vale has been engaged in land conflict with 31 companies including nine holding IUP permits issued by the Norh Kolaka Regency administration in Southeast Sulawesi, and 22 holding IUP permits issued by the Morowali Regency administration in Central Sulawesi.

Weda Bay is facing similar problem with seven mining firms holding IUP permits, six of which issued by the North Halmahera Regency administration, and one issued by the North Maluku Provincial administration.

Director General of Mineral and Coal R. Sukhyar urged the companies to resolve the problem as one of the requirements to be able to obtain export license is that their mining permits must have ?clean and clear? status.

Directorate?s Secretary Paul Lubis said that the ministry has engaged the Corruption Eradication Commission to help sort out the mess over lapping permit problem triggered by aggressive mining license issuance by local governments following the new autonomy power they gained several years ago. (*)