Small firms not allowed to operate coal mines in E. Kalimantan's Kutai

In a bid to help avoid environmental damage, the Kutai regency in East Kalimantan will no longer allow small-scale companies to be involved in mining activities, Regent Awang Faroek has said.

Speaking to Kompas reporter, Awang said that mining activities in the regency would be only offered to certain big companies to ensure that they have the financial capability and technology to carry out rehabilitation works.

There are about 116 coal mining companies in East Kalimantan, which produces about 34 million tons of coal in 2002.

Ex-coal mining sites in many parts of Kalimantan have caused a major environmental problem because most of coal mining companies are still reluctant to carry out rehabilitation program on their former mining areas.

Kaspoel Basran, the head of the environmental impact management agency (Bapedal) in East Kalimantan said that most coal mining operators were still reluctant to carry out the mandatory rehabilitation program on their former mining sites due to the high cost of the rehabilitation works, which often reached 30 percent of the total operating costs.

Many mining companies were also reluctant to rehabilitate their former mining sites due to the lack of control from the local authority, he said.

"In many locations in East Kalimantan we can find former mining areas of the size of an airport with 100 meter in depth," he said, adding that such ex-mining areas has also contaminated the local river and sea.

The decline in the quality of the water had also caused an increase in the public health cost to about Rp 207.1 billion (US$=Rp8,900) a year. Within the next five years, the health treatment cost could reach Rp 383 billion a year. (*)