Weda Bay awaiting govt?s nod over Halmahera nickel project

PT Weda Bay Nikel, a unit of Toronto Stock Exchange-listed nickel miner Weda Bay Minerals Inc, said on Friday it was still awaiting government clarification about the status of its nickel mining site in Halmahera, Maluku, Bisnis Indonesia daily reported.

Weda Bay?s government relation manager Nurdin Sulaiman said they were optimistic that the government would succeed to settle controversies over mining on protected forest areas including the company?s Halmahera project.

Minister of Forestry M. Prakoso said recently he had made no agreement yet with the Ministry of Energy and Mineral Resources which had insisted that certain investors should be allowed to continue their open pit mining projects at protected forests.

The introduction of the forestry law in 2001 has caused controversies over the operation of companies in protected forests. At least 22 mining companies including Weda Bay had received the government approval to operate in the forest areas long before the environment law was issued.

Nurdin said on Friday potential reserve of nickel at Weda Bay?s project site in Halmahera amounted to 220 million tons. The company expected to produce 40,000 tons of nickel and 4,000-5,000 tons of nickel-cobalt annually.

Weda Bay Minerals Inc owns 90 percent of PT Wedabay Nikel, while the remaining balance is held by state miner PT Aneka Tambang Tbk. (*)