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Many miners yet to pay post-mining guarantee funds, energy ministry says

JAKARTA (RambuEnergy) – The House Commission VII which oversees energy and mining sector held a late night hearing on Tuesday with the Energy and Mineral Resources Ministry to discuss post-mining activities. The hearing was also attended by around 293 miner top executives.

The energy ministry was represented by Director General for Mineral and Coal Bambang Gatot Ariyono.

Gatot told reporters after the hearing that many Mining Business Permit (IUP) holders have yet to meet their obligation, setting aside guaranteed funds for post-mining reclamation.

He therefore asked the governors and regency government heads to impose firm sanctions to the miners and push them to pay the reclamation costs.

Given the low level of compliance, some non-government organizations, including Publish What You Pay (PWYP), have called on the government to push miners to pay post mining guarantee funds.

PWYP Indonesia urged the government to firmly sanction IUP holders that have not place the reclamation and post-mining funds.

It said until the beginning of 2018, the percentage of warranty placed by IUP holders is only accounted for 50% of all the existing IUPs, or almost 5000 IUP operated without fulfilling their obligations. Referring to Ministry of Energy and Mineral Resources regulation Number 7 Year 2014 about Reclamation and Post-mining, the placement of reclamation and post-mining warranty is a mandatory prerequisite to be met from the beginning, either the IUP holders are on the exploration phase, or had entered the production phase.

PWYP Indonesia Manager of Advocation and Network, Aryanto Nugroho had stated, IUPs that operated without placing the reclamation and post-mining warranty is solid proof of a flawed supervisory system. “Companies that had deviated the regulations and mining activity standards are still allowed to operate freely. This should not be allowed to happen” Aryanto iterated.

Carolus Tuah, the coordinator of POKJA 30 Samarinda had noted, poor implication of the disobedience of the IUP holders in relations to the reclamation and the post-mining warranty shows a concrete indication  in various areas. “In Samarinda for example, 32 IUPs left 232 gaping mine pits without doing any reclamations. Throughout 2012 to 2017, 28 children had lost their lives in the mine pits owned by 17 IUPs in East Kalimantan.”

Members of the House Commission VII have also urged the energy ministry and local governments to take firm action against miners who yet to pay the post-mining guarantee funds. (*)

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