S.E Sulawesi govt takes over Inco?s mining area

The provincial administration of Southeast Sulawesi province has finally taken over about 200,000 hectares of mining area, which was awarded 40 years ago to nickel miner PT International Nickel Indonesia Tbk (Inco), Kompas reported on Wednesday.

Governor Nur Alam said in Jakarta on Tuesday that as the consequence, the local government had the rights to find new investors to carry out mining activities in the concession area according to its own term and requirements without involving PT Inco.

?We?re open to any party to develop the concession,? he said

He, however, said the local government would not freeze the mining rights awarded to Inco which would last until 2025. ?Inco has agreed that all activities in the area could be carried out under its name,? he was quoted as saying.

The nickel company which currently carry out exploration and mining, processing nickel in South Sulawesi has also been awarded a permit to develop a nickel mine in Southeast Sulawesi province for nearly 40 years. The permit has been extended for second term and would last until 2025.

The local government issued an ultimatum last week to Inco to start mining activities and build a smelting plant in the province if it wants to continue to control the mining area. As Inco could not meet the deadline, the local government then took over the mining area and would find strategic investors to develop them, Nur Alam said. (*)