New rule to be issued on mining in protected forests: Minister

The government will issue a regulation to allow mining companies to pay a sum of money in compensation for the use of protected forest in their operation, according a minister.

?The Governmental Regulation (PP) is expected to be issued next month,? Forestry Minister MS Kaban said on Tuesday.

Last year, the ministry issued a regulation requiring mining firms that wish to operate in protected forest areas to provide compensatory lands measuring twice the area they want to mine. Those failing to comply with the requirement within a period of two years are required to pay a penalty amounting to one percent of their production values

The policy sparked protests from mining firms and associations, who dismissed it as too burdensome. Furthermore, the mining firms argued that it was difficult to find lands compensatory lands demanded by the regulation.

?In principle, the Forestry Ministry understands the problem faced by the firms in finding compensatory lands. Thus, the firms can pay cash compensation to the government. The money will be categorized as non-tax revenue,? Kaban said. (Godang)