13 Transnationals Get Green Light To Mine In Indonesia's Forests - Reuters

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JAKARTA - Indonesia will allow 13 mining firms, including Freeport McMoRan Copper and Gold Inc (FCX.N: Quote, Profile, Research) and PT International Nickel Indonesia (INCO.JK: Quote, Profile, Research) , to continue mining operations in the country, according to a presidential decree that was seen by Reuters yesterday.


The decree, which was signed on May 12 by President Megawati Sukarnoputri, stated those companies that signed mining contracts prior to the introduction of a law banning open-pit mining in forested areas would be allowed to continue operating for the term of their contracts. Many mining projects have been on hold since 1999, when the forestry law was passed. The statute has generally not been enforced.

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The decision has given a certainty to the firms for investment in the sector," Simon Sembiring, director general mineral resources at the government's mines and energy ministry, told Reuters.

"I expect, with this decision, output in nickel, coal and gold mining will be boosted in the future. This decision has been awaited by the mining firms," he added. Indonesian officials said in March that a decree would be issued."

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http://www.planetark.com/dailynewsstory.cfm/newsid/25156/story.htm