Jakarta – Up to US$300 million of mining investments in Indonesia are caught in legal limbo because of a new ban on mining in protected forests, said the Indonesian Mining Association (IMA).

Some 120 mining firms own exploration permits in forests which are now protected, and they may have to abandon their investments in these areas, said IMA official Paul Coutrier.

He added: "Mining companies are confused about which regulation they should follow." In 1999, legislators passed a Bill that restricted mining operations in forested areas, but Mr Coutrier said the government had actually assured mining firms that the forestry law was not binding on firms that had already received their permits.