As a result of the overlapping licenses from the department of Mines and Forestry, one miner was forced to stop production activities. Closing one of the coal mines must affect the company's earnings which of course is very detrimental. This incident shows the number of licensing regulations in Indonesia are still run independently of each ministry.
PT Indo Tambangraya Megah Tbk (ITMG) was forced to close one coal mine in South Kalimantan. Mining area is fully owned by PT Jorong Barutama Greston, ITMG subsidiary, has been closed since last week.
"Closure is mainly due to the over-lapping rules, from different ministries," said Corporate Communications Manager Melina ITMG Karamoy, Friday (12/2/2010). Two rules are the rules of crossing from the Ministry of Forestry and the Ministry of Energy and Mineral Resources (ESDM).
Story, has received permission ITMG mining in the mine area from the Ministry of Energy and Mineral Resources Jorong. But alas, permission from the Ministry of Forestry has not been out. "We're still waiting for permits expansion and extension of the Ministry of Forestry," explained she.
Jorong Barutama ITMG and resignation waiting final decision from the Government. They hope this problem can be completed as soon as possible.
She said, mine closure Jorong Barutama only slightly affect the total production ITMG. "The results of Jorong mine around 1.97 million tonnes or 8.6 percent of the total production of 2010 target of 23 million tons," said Melina.
However, public exposure based on materials ITMG early January 2010 and, until September 2009 Jorong produce 2.4 million tons of coal. Until the end of 2009, Jorong expected to produce up to 3 million tons of coal. Ellipse has a total concession of land about 11,000 hectares.
Jorong addition, a mine Indomico ITMG Mandiri Bontang, East Kalimantan. The mine is estimated to produce 11.8 million tons in 2009. In addition, there are also Trubaindo Coal Mining mines in East Kalimantan with an estimated production of 5 million tons over the past year.
Besides the two mines that, ITMG Kitadin still have mine in the new operating Embalut back in mid-2009 then. During the year 2009, the mine production contribution of 0.7 million tons. Embalut mine in East Kalimantan is estimated to have average production up to 2 million tons per year.
Examples of the above cases, we see the 2 licenses from the Ministry of Energy and Mineral Resources and Ministry of Forestry. Why does not the coordination of any related permits?, Location of mines many forest areas, so that the necessary permits from the Ministry of Forestry in the use of the Forest (area, time period applies). Government needs to re-examine and analyze the licensing of any existing regulations and make improvements, so that does not happen again. Legal certainty is affecting the investment climate.
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