Status of 13 firms? mining fields will be changed

The government will soon issue a presidential decree regarding allowing mining sites in the protected forests in case of 13 mining firms, who have already in operation where the potential mineral reserves exist, Bisnis Indonesia newspaper reported on Wednesday.

Coordinating Minister for Economy Dorodjatun Kuntjoro-Jakti is expected to meet President Megawati Soekarnoputri today (Wednesday) to submit the results of the coordinating meeting including the problems related to the protected forests, a source revealed to the daily on Tuesday.

According to a document which was obtained by the daily, an area of 115,118 hectares will be allotted to mining operations from the total 6,054,175 hectares of protected forests, which are near the mining fields.

Previously, around 13 mining firms had been granted permission to operate in the forest areas. But, it became a problem when these forests were converted into the protected forests in line with the Forestry Law No. 14/1999. Therefore, these firms must cease their mining operations.

The document contained three aspects, which were recommended by the coordinating meeting.

First, the government had agreed to allow 22 mining companies (13 can operate directly, and nine other companies have the potential to continue their activities) to operate in the protected forests.

Second, the meeting has approved the mechanism and the phases to solve the controversial problems related to the protected forests in line with the meeting?s recommendations dated July 18,2003.

Third, the final agreement will be submitted to the President through coordinating minister for economy to get further instructions. It has to be approved by the House of Representatives? Commission II and VIII before issuing a presidential decree.

The 13 companies which may get permission to operate normally in the protected forests are PT Freeport Indonesia, PT Karimun Granite, PT Inco Tbk., PT Indominco Mandiri, PT Antam Tbk (Buli-Malut), PT Natarang Mining, PT Nusa Halmahera Minerals, PT Pelsart Tambang Kencana, PT Interex Sacra Raya, PT Weda Bay Nickel, PT Gag Nickel, PT Sorikmas Mining, and PT Antam Tbk (Bh Bulu Sultra).

The nine companies which have the potential to continue their operations are PT Newmont Nusa Tenggara, PT Sungai Kencana, PT Irja Eastern Mining, PT Kalimantan Surya Kencana, PT Nabire Bakti Mining, PT Dairi Prima Mineral, PT Newmont Horas Nauli, PT Maruwai Coal, and PT Sumbawa Timur Mining. (*)