Official says Inco innocent, calling police to stop probe
Tuesday, October 10 2006 - 05:15 AM WIB
A governmental official said nickel mining company PT International Nickel Tbk (Inco) has been permitted to construct its dam for hydropower plant in protected forests, calling on police to stop probing the company?s executives, Kompas daily reported on Tuesday.
The Luwu Timur police precint in South Sulawesi earlier said it was investigating four Inco's executives ?- its president director, director for operation and project managers ? following the damage caused on parts of the protected forests in Sorowako by the construction of a dam for the firm?s hydropower plant.
Director for the supervision of mining enterprises at the Ministry of Energy and Mineral Resources MS Marpaung said on Monday that Inco had been allowed to build a dam at the protected forests under the Ministry of Forestry decree dated July 28, 2006. The decree allows the company to ?lease and use? the protected forests for five years, a permit that can be extended every five years.
Inco has provided lands twice larger in compensation for the used protected forests.
?Thus, police should have halted the investigation (of Inco?s executives),? Marpaung said.
Inco, a subsidiary of Canada-based mining giant Inco, is building the Karebbe 90-MW power plant in the village of Karebbe to support its plan to increase its nickel in matte out put to 200 million pounds a year in 2009. The project costs the company an estimated US$275 million-$580 million.
Beside in Sorowako, Inco operates nickel mines in other two locations in Bahudopi, Central Sulawesi and Pomalaa, Southeast Sulawesi, and has two hydropower plants at present, that is the Larona hydropower plant with a capacity of 165 MW and the Balambano hydropower plant with a capacity of 110 MW. (*)