New forestry law affects 150 mining projects

At least 150 mining projects with total investment of about US$3.2 billion might be suspended as they could violate the new Forestry Law which prohibits open-mining activities on protected forests, Media Indonesia reported on Monday.

The Ministry of Energy and Mineral Resource, and the Ministry of Forestry have formed two integrated teams to determine the fate of the mining projects, Minister of Energy and Mineral Resources Pranomo Yusgiantoro said after a meeting with Vice President Hamzah Haz recently.

According to the minister, of the total projects, 116 projects are still on exploration stage, 34 projects have been engaged in production, while their contribution to the state reaches $964 million.

The two integrated team would try to find out most acceptable solution on the mining projects which overlap protected forests, the minister said. ? As the mining contracts have signed between the government and investors, we will seek the most moderate solution so that the decision will not hurt investment climate,? he said. (*)