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NGOs call for moratorium on mining projects

Source
Jakarta Post - February 27, 2006

Tb. Arie Rukmantara, Jakarta – An alliance of environmental activists have called on the government to stop all mining operations in the country until their negative environmental, social and economic impacts are properly tackled.

The call came amid pollution allegations leveled at international mining firms, which have spilled over into protests against the companies. Illegal local miners are also involved in disputes with legal operators.

Mining Advocacy Network director Siti Maimunah said the mining industry was doing more harm than good in the country. The regulations on mining must be revised, she said.

About 100 clashes occurred every year between mining firms and local residents or environmental authorities, she said.

"Recently, many environmental and social issues involving mining companies have surfaced. This is because the operations have not been environmentally friendly and because they have neglected the welfare of local people," Siti told a discussion on mining and poverty here last week.

Papuans have protested outside PT Freeport's main office in Jakarta and at its mine in Timika.

Locals set up a roadblock outside the Timika mine for three days last week. Papuans had fired arrows at Freeport security guards earlier, forcing the world's largest copper and gold mining firm to suspend production.

The clash broke out after Freeport prevented local people from sifting through waste rock to retrieve tiny amounts of gold there.

Siti said that aside from triggering frequent clashes, mining industries contributed comparatively little to the country's economy.

"In 2004, their tax and non-tax contributions to state revenues were no more than Rp 7.8 trillion (US$842 million). But the social and environmental costs are much higher," she said.

The millions of tons of tailings produced by mining operations had polluted the country's land, seas and rivers and sickened people living near the tailing areas.

"Therefore, the government needs to declare a moratorium on new mining investment and review the contracts of about 70 mining firms presently operating in Indonesia.

"The purpose is to find solutions on how to save the environment, eliminate social clashes and increase the state's revenues," Siti said.

Greenomics executive director Elfian Effendi said he preferred a temporary halt to selective mining operations.

During the suspension, Elfian said, the government should calculate how much mineral resources the country had and should oblige mining firms to allocate money for environmental development, including land reclamation and reforestation costs.

He said firms whose operations needed to be suspended should include those that were not specifically allocating money to tackle environment problems.

Elfian said in the Philippines, a court had ordered a mining firm to pay US$100 million to clean up an area after leaks were found in its tailings disposal system.

"In this case... the Philippines judiciary fined a mining firm a huge amount... Here, I wonder why Freeport can use a whole river to channel its tailings for free?" he said. Lawmaker Kahar Muzakkir, who is a member of the House of Representatives' working committee on the draft mineral and coal bill, said formulating stricter regulations on licenses for mining companies could ease environmental destruction and social tensions.

"Therefore the new bill should also regulate those authorized to issue mining licenses," he said.

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