Three companies start their mining projects

Three mining companies including PT Nusa Halmahera Minerals (NHM), PT Dairi Prima Minerals (DPM) and state owned coal mining company PT Batubara Bukit Asam (PT BA) have started their mining projects, indicating a sign of revival in the country's mining sector, Neraca daily reported on Thursday.

Mahyudin Lubis, the director for mineral and coal mine development at the ministry of energy and mineral resources, said in Jakarta on Wednesday that NHM had begun the construction of its mining project in North Maluku, while DPM had started its mining project in Karo, North Sumatra.

"Meanwhile PT BA is currently preparing the construction of its three coal briquette plants in South Sumatra," he added. According to him, the three companies would invest at least about US$100 million to develop their projects.

He estimated that new investments in the mining sector would increase to US$900 million this year, an increase from about US$800 million last year. The total amount of the new investment could reach US$1 billion, if the licensing problems of several mining companies were cleared.

Several mining companies including PT Sorik Mas Mining, PT Karimun Granite, PT Pelsart Tambang Kencana, PT International Nickel Indonesia (INCO), PT Aneka Tambang , PT Weda Bay Nickel, PT Gag Nickel, PT Freeport Indonesia, PT Natarang Mining and PT Indominco Mandiri had been asked to halt their mining projects because part of their mining areas overlapped with forest conservation areas.

The companies need to obtain special licenses from the ministry of forestry to resume their mining activities in these new mining sites. (*)