Mining moratorium won't affect producing companies: Minister

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that the decision to impose a moratorium on mining activities in Central Kalimantan was based on a consensus between the local and central government in a bid to curb illegal coal mining activities in the province, Kompas daily reported on Tuesday.

The minister said that the moratorium would not affect coal supply from the province because the moratorium was imposed only on "non-productive" mining companies.

The regent of the Hulu Sungai Selatan (HSS) in Central Kalimantan, Muhammad Safi'ie has threatened all mining companies in the regency - either they are still in exploration stage or those which have already started production -- to halt their mining activities.

The regent's decision was supported by Central Kalimantan Governor Sjachriel Daham who said that the moratorium imposed by the HSS regency could be used as a model to curb the growing illegal mining operation.

Sjahriel admitted that the provincial authority was not consulted in the issuance of the moratorium policy. But he said that the moratorium was important to ensure that coal-mining activities follow the existing legal procedures. (*)