Mining firms in C. Kalimantan suspend activities
By: George Blunt
Wednesday, July 5 2000 - 10:30 AM WIB
Most of the mining firms in Central Kalimantan have suspended activities for concerns over social, political uncertainties and security problems.
The province's governor Asmawi Adani said during a hearing with the House of Representatives' Commission VIII for mines and energy on Wednesday the companies had said they would resume activities after the social and political situations improve.
He said there were 28 coal-mining companies and 15 gold mining companies operating in the province.
Most of the companies were in still in the feasibility and exploration stages with only five of them already in production or having completed explorations.
Two companies are already in production that is gold companies PT Indo Muro Kencana and PT Ampalit Mas Perdana.
Indo Muro Kencana, which started production in 1995, is now facing problems with the local people who have been occupying its contract area since June last year, the governor said.
Ampalit Mas Perdana, which started production in 1988, is also facing problems with the illegal miners, who have encroached on its contract area and damaged the areas that had been reforested by the company, he added.
"Due to the problems, Ampalit asked for the government's permission to terminate its operation," he said.
He also noted three companies have completed explorations, including PT Kasongan Bumi Kencana, PT Asthon Mercu Buana Mining and PT Marunda Graha Mineral.
Gold company Kasongan completed explorations in 1993 and started construction in 1997. It however temporarily stopped the construction activities in 1998 due to economic crisis.
The company resumed the construction in October 1999 but the construction has been slowed down due to the currency fluctuation, Adani said.
Gold company Ashton has completed explorations and environmental impact analysis study but delayed constructions for concerns over social and political situations and security matters.
Coal company Marunda Graha has discovered a coal deposit of 34 million tons with the calorie contents of 7000 per gram in the Tanah Siang, Laung Tuhup, Murung and Barito areas. IT is doing a feasibility study and, during the study, found problems in transporting the coal in the future, the governor said. (*)