PT Saka's license to mine Buton asphalt not extended
Friday, April 27 2001 - 04:30 AM WIB
The ministry of energy and mineral resources has refused to extend mining license with state-owned PT Sarana Karya (Saka) to mine asphalt on Buton island, Southeast Sulawesi, contending that the right to license mining activities now lies with local administrations.
Following such a decision, Southeast Sulawesi governor La Ode Kaimuddin has said that local administrations would entrust local company Kaper Bukari to make planning to exploit and develop Buton asphalt by involving investors, Koran Tempo daily reported on Friday.
The daily quoted Antara news agency report that local people, sidelined from asphalt mining activities for years, now could take part in the mining activities under the plans drafted by Kaper Bukari.
Kaper Bukari planning director Rado Hasim said his party had prepared three main activities to develop Buton asphat to restore the reputation of Buton asphat as the world's best natural asphalt. The three mining activities would involve local people as well as investors - both domestic and foreign investors.
The three activities include mining activities that would involve local people, the production of liquefied asphalt through extraction process and the mixing of ready-to-use asphalt.
All those processes, especially the extraction and mixing process would need the participation of investors because of the relatively big fund needed. In the extraction process, for instance, it would need some US$30 million of investment to produce around 150,000 tons of liquefied asphalt per annum.
To materialize those plans, Rado suggested that local administrations reject any proposal from PT Saka to extend its asphalt mining concession rights in Buton island because Saka had neglected not only local people but also the world's best quality asphalt.
"This company (Saka) has destroyed the reputation of this world's best natural asphalt by producing asphalt at below-par quality that is not demanded by consumers. In fact the raw material here is the best," he said.
Rado suggested that local administrations take over PT Saka's operation in Buton by assuming its debt, including Rp 7.6 billion (US$=Rp12,000) debt to the central government, so that local administrations and Kaper Bukari could take over assets belonging to Saka, including ports, office building and also warehouses. (*)