Minister: Mining sector ?moratorium? to accelerate consolidation process

Minister of Energy and Mineral Resources Sudirman Said stated that the ministry is ready to follow the instruction of President Joko Widodo (Jokowi) to suspend the issuance of new licenses in the mining sector, a move that would help accelerate the ongoing consolidation process in the sector.

He said over the weekend that the current drop in mining commodity prices provides momentum to suspend (moratorium) the issuance of new licenses. ?Mining commodities have been under pressure. This is the right time to accelerate consolidation process,? he said.

Jokowi unveiled last week the government?s plan to suspend the issuance of new licenses in mining and palm oil sectors in a bid to help protect the environment. Reports said that a presidential instruction will be issued to realize the policy.

Sudirman said that the moratorium plan would not much affect the industry players as they have no longer been aggressive in expanding their mining assets during the past few years amid the lingering mining sector downturn. ?There has been not much enthusiasm in opening up new mines, not as aggressive as in the past,? he said.

?I think the moratorium will help strengthen and accelerate our consolidation efforts. The mining sector should be filled with players that are serious and are concerned with the environment,? he added. (*)