Meares Seputan Mining not allowed to start Minahasa mining operation

The provincial administration of North Sulawesi has prohibited PT Meares Soputan Mining (MSM) from starting activities at its gold mine until the company revises its Amdal, the document containing the company's programs to cope with the impact of the mining activities on the environment.

The policy was unveiled by North Sulawesi vice governor Freddy H. Sualang on Thursday amid a growing protests from villagers living near the mining area against the company's operation.

"We remain consistent that we would not allow the company to begin its mining activities until it revises the Amdal," he was quoted by Media Indonesia as saying. "The decision is in line with the peoples' aspiration," he added.

According to him, MSM is required to revise the Amdal to ensure that its mining activities would not cause harms to the environment, especially the life of villagers living near the company's mining site.

Earlier, MS Marpaung, director of coal and mineral business development at the Ministry of Energy and Mineral Resources said 11 mining companies including MSM were expected to embark on exploitation activities soon.

The government has encouraged the companies, which are expected to invest a total of US$3 billion, to start production next year or in 2010 at the latest, according to Marpaung.

MSM is a subsidiary of London Stock Exchange-listed mining firm Archipelago Resources. (*)