Antam ready to start mining in protected forest

The decision by the Indonesian government to allow 13 mining companies to prospect and operate in protected forest areas has appalled a large number of Indonesians and activists around the world. While big multinational mining companies (such as BHPBilliton) stand to gain from this decision, it is the Indonesian company Antam which seems least abashed at the betrayal

Antam ready to start mining in protected forest

Miningindo News

16 March 2004

PT Aneka Tambang Tbk (ANTAM) will definitely start the resumption of its mining operation following the issuance of regulation in lieu of law (Perpu) no. 1/2004. The Perpu shall allow the resumption of mining activities by 13 operators in protected forests.

Antam's corporate secretary Dohar Siregar to Investor Indonesia daily said it on Mar.15 in Jakarta.

"We are happy that we can go ahead with the resumption of our mining activities. But we have to wait for the issuance of the presidential decree, which is to legislate the mining resumption in protected forests," said Siregar. According to him, the issuance of the Perpu would indeed give positive impacts to mining industry of the country while creating better image amidst the international mining communities.

Siregar said that Antam is ready to start the mining resumption together with the other partners under the joint venture such as PT Weda Bay Nickel, PT gag Nickel, and PT Sorikmas Mining. "Our affiliates i.e. Buli-Maut and Bh Bulu Sutra are also ready to start operating," said Siregar. So far Antam still focuses on nickel mining with open-pit method.

Antam will certainly exploit nickel in Bahubulu

Miningindo News

March 15 2004

PT Aneka Tambang (antam) Pomalaa will very likely be allowed to exploit nickel deposit of Bahubulu Island in the regency of Kendari, Southeast Sulawesi (Sultra) province following the issuance of government regulation in lieu of law (Perpu) No 1/2004 pertaining the amendment of law no.41 on forestry. So far Antam has been prohibited to exploit the nickel deposit in the island because the island is included in the list of areas of protected forests.

It was said by the head of mining division of Southeast Sulawesi province, Aminuddin Arief, in Kendari on Mar.12 as quoted from Suara Karya daily. With the issuance of the Perpu, Antam will very likely be allowed to exploit nickel in the island. In addition to Antam, 12 other mining companies will also be allowed to go ahead with their operations in protected forests following the issuance of the Perpu. Even though they are still subject to complying particular regulation on mining in protected forests.

Antam will not be allowed to exploit the whole concession area in the island straight off but the exploitation shall be carried out by stages based on careful planning. The team of commission VIII of the Indonesian national parliaments (DPR) together with the team of the Indonesian ministry of energy and mineral resources has previously visited Bahubulu Island for the purpose of inspection.

Most of them agreed that the nickel deposit in the island should be allowed exploited. The island is located in the Lasolo gulf and in fact of no big size and hardly inhibited. The flora and fauna on the island are not of the endangered species. The forest on the island is almost hardly thick. Thus, it was recommended by the team that the mineral deposits in the island be unobjectionably exploited.

Aminuddin Arief said that Antam has so far been eager to exploit the nickel deposit in the island because the company is indeed in bad need of greater supply of nickel ores to meet the demand of its Ferro-nickel-III plant. If there is no additional production of mining particularly from Bahubulu Island, in the next five years Antam's stock of nickel ores will definitely run out. So far to meet the demand of raw materials the company has obtained and delivered nickel ores from Gebe Island in North Maluku.

Recently Antam has been vigorously conducting exploration for nickel ores in West Sumbawa regency. The regency is currently eyed by a great number of mining investors. Among others is PT Indotan Inc, which has recently submitted its proposition of interest in exploring for gold and copper deposits in Seteluk sub district in northern part of West Sumbawa. Antam has also submitted its proposition of interest in exploring for nickel deposit in Lebo Taliwang of the regency.