Law Results in 19 Mining Companies Stopping Operation

Kendari, SE Sulawesi (Antara) - The implementation of the Law No. 4 of 2009 on coal and minerals has forced at least 19 mining companies in Southeast Sulawesi to stop operation. The law requires mining companies to process their mineral ores before being exported. The law necessitates mining companies to have plant, either their own or plant of other companies to process their ores. The law is effective as from January this year, but many companies could not afford building processing plant. Building a plant is not feasible even for many big mining companies, observers have said. Mining giants like Freeport Indonesia, Newmont and PT Antam have not fully complied with the law regulation, they cited. The most serious impact of the stoppage of operation of the companies is loss of jobs for many workers, adding to the country's already high unemployment rate. Head of the industrial relations and labor supervision of the regional manpower office Makner Sinaga said the companies should from the beginning have known the impact of the law when it was passed in 2009. "Wave of dismissals of workers since the law was effective has continued in Southeast Sulawesi. The number of jobs cut grew from day to day," Sinaga said here on Wednesday. (*)