President issues decree to allow underground mining in protected forest
Bumi Resources Minerals on tracks to start production from Dairi zinc project
Monday, May 23 2011 - 03:30 AM WIB
The presidential decree was issued on May 19, 2011, the firm said in a statement.
In line with the presidential decree, firms that want to develop underground mining in protected forests need first to secure the Principal Agreement from the Ministry of Forestry (up to 2 years and can be extended), and the Forest Borrow and Use Permit from the same ministry (up to 20 years and can be extended).
Company CEO Kenneth Farrell said, ?The long awaited Presidential Decree issuance is truly great news to our zinc concession operated by our 80% owned subsidiary, PT Dairi Prima Minerals (Dairi), in North Sumatera. Our team is now in the process of submitting the formal request to ultimately obtain the Borrow and Use Permit to conduct the underground mining activities in the Dairi?s concession.?
Farrell further added, ?The Presidential Decree which supports the conditional underground mining in the protected forest area is a huge improvement in the Indonesia?s mining industry. It will allow a lot of concession owners to monetize their mining reserves in the near future.
This also means more added value royalties for the country. We remain optimistic that the Borrow and Use Permit for the underground mining in Dairi will be in place soon. This will lead to Dairi commencing its first production early in 2013 subject to the availability of such Permit and all other conditions being satisfied.? (godang)