Rio Tinto gets forest land use permit from Forestry Ministry

PT Rio Tinto Indonesia, the unit of Anglo-Australian mining giant Rio Tinto, said that the Forest Ministry had given a forest land use permit for the development of 73,000 hectare-nickel mining concession in the border areas of Central and Southeast Sulawesi province.

Rio Tinto?s spokesman Budi Irianto said that all things related to permit for forest land use from the Forest Ministry has already been completed. ?All is done. But, if in its further development, there is a change in the forest function, then we will comply with the existing regulation,? he said.

The land permit is among the requirements for Rio Tinto to receive a contract of work (CoW) from the government.

He said the firm was still committed to develop the mines despite the global economic crisis.

Earlier, PT Rio Tinto Indonesia?s president director Omar S. Anwar said: ?The administrative process for the contract application with the central government has been completed. We are now completing the administrative process with the local governments,? he said, adding that the contract would be valid for 30 years and extendable for another 20 years.

The company plans to invest up to US$2 billion to develop the Sulawesi nickel mine and to begin pre-feasibility study in 2009. In 2010, Rio Tinto plans to carry out front end engineering design (FEED) and to begin engineering procurement and construction (EPC) in 2011.

The signing of the contract has been delayed for years as many parts of the company?s concession area overlap with the mining areas of other companies which have already received licenses from the local governments. (godang)