S. Kalimantan governor instructs contractors with KP license to stop operation

South Kalimantan Governor Rudy Ariffin has instructed regent in mayors in the province to close down all coal mining companies that operate with mining authority (KP) license until the contractors meet the new conditions, Banjarmasin Post reported Saturday.

The daily said that the governor has sent a circulation letter to all regents and mayors in the province, disclosing points regarding the improvement and reevaluation of the KP license, including asking all contractors who hold KP license to stop operation until they meet the new terms and conditions.

South Kalimantan?s head of Mining Office Heryo Dharma said that under the decision letter of the ministry of forestry no 14, year 2006, all contractors who hold KP license are obliged to meet the conditions on the lease of forest area. The letter also said that a contractor with KP license which fails to meet one of the conditions, then the license will be deemed illegal and subject to revocation.

He said that local administration is now evaluating the KP license issue to make it in harmony with the regulations issued by the Forestry Ministry. For this purpose, a team whose major tasks are making an inventory and verification (on the KP license) has been established. The team is made of representatives from local mining office, forestry office and several related agencies inside and outside forest areas.

Meanwhile, several coal mining companies with KP license have threatened to lay off their employees.

PT Kamikawa Gawi Sabumi (KGS), one of the coal mining firms in Tanah Bambu regent, said that the company would not be held responsible for the fate of the laid off employees if the company was closed down.

Since the enactment of Regional Autonomy Law in 2001, the Ministry of Energy and Mineral Resources has transferred its authority to issue KP to regional government. (*)