Mining firms warned to abide by regulations

The government has warned foreign mining companies to abide by mining and environmental regulations if they want to continue their operations in the country, Bisnis Indonesia daily reported on Wednesday.

State Minister for Environment Sony Keraf said that all foreign mining companies including those from the United States, Australia and Canada should follow the existing environment and mining regulations if they wanted to be accepted by their local communities.

"We encourage them to abide by the regulations," he told journalists following a meeting between representatives of foreign mining firms from the U.S., Australia, Canada and senior government officials including Coordinating Minister for Finance and Trade Kwik Kian Gie and Mines and Energy Minister Susilo Bambang Yudoyono.

Bambang said that the government representatives briefed the foreign companies about the existing mining and environment regulations and the impact of the decentralization of the government's mining authority in the meeting.

Meanehile Detikcom online news service reported that the meeting also discussed the fate of Indorayon pulp plant and Freeport Indonesia.

Speaking to reporters after the meeting, Sony said that the government was still discussing whether or not to close Indorayon pulp plant, which allegedly caused a severe damage to the environment.

He also said that the verification team assigned to investigate alleged environmental damages made by Freeport was also studying the case, which also included the company's obedience to fulfill its contract of works.(*)