PT Inco obliged to build smelter
Wednesday, February 16 2011 - 02:50 AM WIB
Forestry Minister Zulkifli Hasan said the provincial government had not yet issued recommendation related to the company?s request to leasehold a forest area to continue operating in South Sulawesi until 2025.
?Inco is still waiting for a recommendation from the provincial government. Without it we cannot issue the forest use license. Surely Inco has to build smelter there,? the minister said.
In 2010, the ministry reprimanded Inco and six other companies for the second time for operating in protected forest without license.
The South Sulawesi government refused to issue recommendation to Inco to use 100,416 hectares of forest area in East Luwu and asked the company to reduce the concession to 25,000 hectares only. The refusal was signed by Governor Syahrul Yasin Limpo in a letter No. 522/2965/Disenergi dated May14, 2010.
To lure the local government, Inco president director Tony Wenas said the company was committed to working with the provincial government in operating the concession.
Inco finally opted to involve other investors to operate a new nickel mine in Southeast Sulawesi and refused to release the corporatation?s right.
The decision was a response to Southeast Sulawesi governor Nur Alam?s Jan. 31 deadline set for Inco to take a decision on whether to maintain its presence in the province.
According to the report of the meeting on Jan. 30, 2011 between Inco and the Southeast Sulawesi government, the company agreed to allocate a mine for joint operation with the local government and a new investor from China.
Inco also agreed to help build the province as a mining industry region.
Inco?s concessions cover 218,528.99 hectares across South Sulawesi (lake area), Central Sulawesi (Bahudopi, Lingke, Bulubalang, Kolonodale), and Southeast Sulawesi (Latao, Suasua, Paopao, Pomalaa, Torobulu, Malapulu, Matarape, Lasolo). But only 6.000 hectares of plot have been explored. (*)