Newcrest?s Citra Palu not allowed to develop Sulawesi mining site

The Central Sulawesi provincial government has banned PT Citra Palu Mineral, a subsidiary of Newcrest Mining Indonesia, from developing its gold mine site located in the province?s Tahura forest conservation area inn Paboya despite the approval made by Jakarta, Bisnis Indonesia reported on Tuesday.

?We will not give any chance to PT Citra Palu Mineral to carry out exploration because the Tahura conservation is an important water catchments area for the province?s capital of Palu,? Central Sulawesi Governor, Aminuddin Ponolele, said.

The governor said that the local government would not change its previous decision although the company said that the exploration activities would not cause a negative impact on the environment.

?If Citra Palu Mineral is still interested in investing in Central Sulawesi, the company can carry out oil exploration in its concession area outside the Tahura conservation such as those located in Parigi and Moutong,? he said.

Citra Palu has a concession area which covers 561,050 hectares. The company took over the concession area from Rio Tinto which obtained it in early 1997. According to the new forest law, mining companies are banned to carry out mining activities in forest conservation area.

But the Ministry of Mines and Energy later allowed the company to continue the project because based on the company?s analyses on its impact on environment (Amdal), the project would not damage the environment. (*)