Meares Soputan urged to meet Amdal requirement

The government calls on PT Meares Soputan Mining (MSM), a subsidiary of London Stock Exchange-listed mining firm Archipelago Resources to meet several environmental requirements, including making an Environmental Impact Analysis (Amdal) before starting production activities at its Toka Tindung gold project in North Sulawesi.

 

Minister of Environment Rachmat Witoelar said in Jakarta Wednesday that the condition and location of the mining company would potentially cause damages to the environment in the area as the company has yet to make an Amdal.

 

The ministers said that so far the local government, council and community have objected to MSM’s investment plan.

 

Meanwhile, director for business development of mineral and coal of the ministry of energy and mineral resources Mangantar S. Marpaung said that actually, MSM had made an Amdal before signing the contract of work with the government.

 

Under the Amdal, the company will dump mining waste into the sea. However, in a further development, the government asked the company to dispose of the waste on the land.

 

“After they managed to get a land for the waste disposal and an approval from many parties, including the Ministry of Environment, local governor expressed its objection,” he said.

 

So far, the central government has extended a license for the company to operate in the mining area.

 

MSM capital expenditure will reach US$60 million in 2007 and the project will soon start operation in October of this year with processing capacity of 1.4 million tons of gold ores and will be raised to 1.7 million in 2008, MSM's general manager Peter Brown said in March 2007. (*)