North Sulawesi suffers Rp 6.8b in annual losses due to illegal gold mining

The North Sulawesi province suffers some Rp 6.8 billion (US$1=Rp 8,800) in annual tax losses due to rampant illegal gold mining activity, the local Manado Post daily reported.

Citing data from the local office of the ministry of energy and mineral resources, the paper said that the total gold production of the illegal miners reached 114.23 kg per month or 1,370.7 kg per year. It said that if gold price was Rp 50,000 per gram, the total annual production of the illegal miners worth Rp 68.53 billion. And assuming that 10 percent should go to the provincial coffer in the form of tax, the total tax loss suffers by the province annually reached Rp 6.8 billion due to the illegal mining.

The paper said that the illegal gold mining activity occurred in six regencies in the province involving some 7,615 local people. In the Minahasa district, illegal gold mining is rampant in three sub districts including Dimembe, Belang, and Likupang. In Bitung district, illegal miners were seen in the North Bitung sub district, in Bolmong district (Lolayan, Modayang, Dumoga, and Kotabunan subdistricts), in Gorontalo district (in Suwawa and Paguyaman sub districts), in Boalemo district (in Marisa sub district), and in Sangihe Talaud (in South Manganitu).

Illegal mining activity has been a serious problem to the country particularly as it involves a lot of people. (*)