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Thai miner asked to stop exploration
Monday, 16 January 2012 00:00
Thai miner asked to stop exploration
Ridwan Max Sijabat, The Jakarta Post, Jakarta | Mon, 01/16/2012 8:13 PM
The government has ordered PT Multi Tambangjaya Utama (MTU) to stop coal exploration in Buntok, Central Kalimantan, until the Supreme Court issues a final decision on the troubled company’s fate, says an official.
Thamrin Sihite, the director general of minerals and coal at the Ministry of Energy and Mineral Resources said MTU, a subsidiary of a Thai mining company, had to comply with the verdict of the Buntok District Court, which declared the company “in default” in August, 2011, for damaging the production forestland at its mining site.
“We have established coordination with the Central Kalimantan governor and the Buntok regency administration to urge the coal mining company to stop its activities until the Supreme Court issues its decision on the appeal submitted by the office of the Buntok district attorney and until the Forestry Ministry evaluates the rehabilitation [process] made by the company in the damaged forest area,” he told reporters here recently after meeting with the House of Regional Representatives.
Sihite underlined that the Thai company was not allowed to lend or sell its mining permit to other mining companies until the Supreme Court issued its verdict.
“The Thai investor can sell the company but not the mining permit,” he said, adding he was considering revoking the work contract.
The office of the Buntuk district attorney appealed to the Supreme Court after the district court acquitted MTU CEO Warayot Sermsaksakoon of any charges. Warayot was tried for ordering mining works in production forests without a permit from the Forest Ministry.
However, the court declared the company’s mining operation in default. For this, the company is required to compensate for environmental damages.
The Anti-corruption Community (MAKI) urged the government to terminate the Thai company’s operation because it had been declared in default by the district court. It said that despite the court’s decision, the company has resumed its operation and export of its coal stock.
MTU spokesman Bagus Jaya Wardhan said his company has stopped its activities, except activity related to environmental repair work as required by the court.
“MTU has terminated its exploration in compliance with the court verdict while making necessary repairs and rehabilitation of the damaged area in the production forest area, which is part of the company’s concession area,” he said.
Bagus also said his company would report to the Forestry Ministry on progress made in the repair work associated with its efforts to secure permission to resume operations.
http://www.thejakartapost.com/news/2012/01/16/thai-miner-asked-stop-exploration.html
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