Protests against Indo Mines? ironsands project growing

The government will go ahead with its plan to issue a contract of works to Australian mining firm Indo Mines Limited and its Indonesian partner PT Jogja Magasa Mining to develop an ironsands project complex along the coastal area in Kulonprogo, Yogyakarta despite mounting protests from local residents, Kontan reported on Wednesday.

Bambang Setiawan, the director general of mineral, coal and geothermal at the Ministry of Energy and Mineral Resources, said in Jakarta on Tuesday that the contract of works for the company to develop the US$600 million ironsands project would soon be signed.

?We are still waiting for a confirmation from the minister to sign the contract,? he said, adding that the signing of the contract could not be signed last week as initially scheduled because Minister of Energy and Mineral Resources Purnomo Yusgiantoro could not attend the signing ceremony.

Meanwhile, thousands of villagers from Kulonprogo and surrounding areas, continued their protests against the development of the ironsands project on Saturday despite a green light from the local provincial government.

Supriyadi, who represented about 3,000 villagers living near the ironsands mine project, said that the local residents would continue protesting the project not only because it would bring a negative impact on the environment, but also would displace many people who live and conduct farming actives in the areas.

Lutfi Heyder, the president of PT Jogja Magasa, however, said that the mounting protests would not deter the company and its partner from developing the Kulonprogo ironsands mine project which would absorb about US$600 million in investment.

?We have met all the required procedures to develop an ironsands mine in the area. And if there are pro and corn, they are not our business,? he said.

Lutfi said that Jogja Magasa and its partner would soon carry out an environmental impact analysis study (Amdal) soon after the contract is given. ?Soon after the Amdal is approved, the project will be begun,? he added. (*)