PT Gag Nikel remains uncertain about nickel project in Papua

PT Gag Nikel Indonesia remains uncertain whether it will be able to continue the feasibility study on its nickel project in Papua although the government has decided to allow it to resume the project, Bisnis Indonesia reported on Monday.

The company, which is jointly owned by BHP of Australia and state owned general mining company PT Aneka Tambang, has not received a written recommendation from the government to go ahead with the project.

?We just know from the press reports that PT Gag may continue its project. But the company has not so far received a written statement from the government,? said Dohar Siregar, corporate secretary of PT Aneka Tambang.

Dohar said that the shareholders had committed to investing about US$75 million to develop the project which would become one of the country?s nickel mining project in the country.

The government recently said that it had agreed to allow mining companies in protected forests to continue their operation despite the enforcement of the forestry, law which bans open-pit mining activities on forest conservation areas.

Director General of Geology and Mineral Resources, Wimpy S. Tjetjep said in Jakarta on Tuesday that all parties including the ministry of forestry agreed that mining firms including PT Gag Nikel, which received their contracts of works before the enforcement of the law, were allow to resume their mining activities although part of their concession areas overlap protected forests.

The forestry law, which was only introduced last year, bans open-pit mining activities on protected forests in a bid to protect the environment. The ministry of forestry earlier demanded that all activities of mining firms whose concession areas overlap protected forests be stopped. But the ministry of energy and mineral resources opposed the forestry ministry?s proposal. (*)