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Monday, 12 November 12
THE ESTABLISHMENT OF NORTH KALIMANTAN AS A NEW PROVINCE WILL NOT AFFECT THE LOCAL MINING COMPANIES


The government of Indonesia has ensured that the establishment of North Kalimantan as a new province will not affect the local mining companies operating in regencies formerly under the East Kalimantan administration. Local mining businesses in Bulangan, Malinau, Nunukan, Tana Tidung and Tarakan regencies, which were previously part of East Kalimantan province, would not, for example, have to apply for new permits, said Deputy Energy and Mineral Resources Minister Rudi Rubiandini, according to The Jakarta Post, one of the leading English news paper in Indonesia.

“The mining permits [IUPs] for small-scale mining businesses must promptly hand over the documents to the new administration so the latter can publish new certificates. “The mining businesses will only have to reregister themselves to the North Kalimantan provincial administration for administrative purposes,” Rudi said, the paper reported.

Larger mining companies operating under contracts of work agreements with the central government would not have to re-register with the new regional administration, the deputy minister said.

The new province, which is rich in oil, gas and coal, will have Tanjung Selor as its capital and will span a total area of 71,176.72 square kilometers with around 622,350 residents. Its regencies will comprise Bulungan, Malinau, Nunukan, Tana Tidung and Tarakan, The Jakarta post reported.

Currently, 15 coal mining companies operate in Tana Tidung, whose concession areas spanned 37,708 hectares as of 2009, according to data from the local administration. In Nunukan, at least 13 mining companies are exploring coal potential in the region.

“The government must strengthen its control in the management of the mining industry in the regions and to oversee the new provincial administration establish its mining policy over the next 12 months,” said Syahrir Abubakar, executive director of Indonesian Mining Association (IMA), according to the Jakarta Post.
Source: The Jakarta Post ( To read more click here
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