"Landep News"
The Southeast Sulawesi Governor H. Nur Alam has accused PT International Nickel Indonesia Tbk (PT Inco), the publicly listed Canadian company’s which is a nickel mine contract holder covering 63,506 hectares in the province, to have part of their mining operation within the protected forest area without the permission of the Indonesian Minister of Forestry.
“PT Inco nickel mine believed to have been mining within a protected forest area of around 70 acres without the approval of the Minister of Forestry,” he said in Kendari, on Sunday.
According to him, these activities not only violated the Forestry Law, but also very damaging to the Southeast Sulawesi.
“The loss suffered by the government and Southeast Sulawesi people caused by mining in protected areas could reach trillions of Rupiah,” he said.
PT Inco, he said, sell the mine production in the protected area out of the country in the form of ore (soil mixed with nickel).
“Selling in the form of nickel ore by the company headquartered in Toronto, Canada, also violates the provisions in the contract works awarded to the company,” he said.
According to him, in line with the work contracts, foreign companies must be producing nickel raw materials to supply industries that require nickel-finished material, not to sell the ore overseas.
Because of these various violations, Nur Alam said that he will soon compose a letter to the Ministry of Energy and Mineral Resources (ESDM), requested that the Canadian company’s work contract to be revoked, and if necessary to bring about the appropriate legal process.
“Mining in forest areas and violating provisions of the contract work are obviously a crime, so it can be acted upon according to the legal process,” he said.
Meanwhile Senior Coordinator, Media Release PT Inco, Iskandar Siregar, in a separate statement saying that the PT Inco in conducting its activities are always compliance and in accordance to the statutory provisions.
If then there is an allegation as expressed by the Governor of Southeast Sulawesi, he said, PT Inco is ready to sit down together and review the location of the settlement in order to find a better solutions.
“As a public company, PT Inco is prepared to conduct field checks on the alleged mining in protected forest areas and are ready also to take responsibility,” he added.
PT Inco or PT International Nickel Indonesia Tbk is a public company operated in Indonesia since their first mining contract of work is signed in 1968. The company is owned by Vale Canada limited for 58.73%, Sumitomo Metal Mining Co., Ltd., 20.09% and Public and other shareholders – 21.18%. PT Inco produces nickel in matte, an intermediate product, from lateritic ores at our integrated mining and processing facilities near Sorowako on the island of Sulawesi.
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