Update 1: House passes mining bill into law

(Adds comments form the minister and legislators on the last paragraphs)

The House of Representatives passed on Tuesday the mining bill into law after years of deliberation and despite protests from several factions.

The new legislation, which will replace the 1967 mining law, will fill in the legal vacuum in the mining sector caused by the introduction of local autonomy in 2001

Three factions ? the National Awakening Party (PKB), the National Mandate Party (PAN) and the Justice and Prosperity Party (PKS) ? walked out the plenary session after failing to push the session to revoke the article of the law that allows that existing coal and mineral contract of work (CoW) holders to continue their operations using their existing contracts.

?While new companies will face tough rules, the old companies, which are over exploiting, continue enjoying incentives until the end of their operations,? Zulkifli Halim, the spokesman of PAN, said while reading the faction?s statement during the plenary session.

Members of the three factions walked out of the meeting when Minister of Energy and Mineral Resources was about to give his speech.

Seven factions read statement during the session to support the law. The factions are the Golkar, Indonesian Democratic Party-Struggle (PDI-Perjuangan), Democrat, Development Unity, Prosperous and Peaceful, Star Reform Pioneer and Star Reform parties.

The article that sparks the protests from the three factions read: ?The mineral and coal contract of works issued prior to the enactment of the law remains valid until the end of the contract period.?

Muzamil Yusuf, a member of PKS, said his faction wanted that the law, in its explanation section, specifies which CoWs that are exempted from complying with the law.

?The CoWs are divided into several ?generations?. The law should have explained which generations should comply with the new law and which ones are allowed not to follow the new law,? he said.

Purnomo said the government could not accept the request because it had to respect the contracts that it had signed. (Godang/Bernard)