Newcrest?s NHM gets green light to temporary resume mining in protected forest

Ministry of forestry had issued temporary permit for PT. Nusa Halmahera Minerals (NHM), a subsidiary of Australian miner Newcrest Mining Limited to continue exploration works in its North Maluku mining concession which is considered to be located in protected forest area, according to ministry's letter obtained by Petromindo.Com.

According to the letter dated May 9, 2003, NHM was given permission to continue mining activities in Gosowong and exploration works in Toguraci until the end of June this year, when the government is expected to decide on the controversy of mining in protected forest areas.

The letter said the reason to allow the company to resume mining activities was to avoid employees? lay-off.

NHM would originally cease mining operation in Gosowong mine due to reserve depletion this year, but the company had managed to discover significant gold reserves in Toguraci prospect near Gosowong mine, which could extend Gosowong mine life for several more years. But, Toguraci is considered located in protected forest area, where, according to Law No.41, 1999, open pit mining was prohibited.

Ministry of forestry had been under fire for not allowing mining companies, which obtained their exploration permit prior to the issuance of Law 41, 1999 to resume exploration or development activities in the areas that are considered to be located in the protected forests.

The government had promised to make decision on the fate of 22 mining companies, whose concessions are located in protected forests on June this year.(godang)