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Mining, oil & gas

In brief... DTE 72 - March 2007

Down to Earth No. 72 March 2007

CGI creditor group disbanded

Indonesia's creditor group, the Consultative Group on Indonesia, has been disbanded after President Susilo Bambang Yudhoyono said it was no longer needed. The January announcement was officially welcomed the World Bank, former CGI chair and one of Indonesia's three main creditors alongside the Asian Development Bank and Japan.

A nuclear future?

Down to Earth No. 72 March 2007

The Indonesian government is putting in place arrangements to develop its highly controversial nuclear power programme - starting with a reactor on the Muria peninsula in densely populated Central Java.

In December 2006, Indonesia made an agreement with South Korea which paves the way for cooperation on Indonesia's nuclear power programme.

North Sulawesi confronts Jakarta over MSM gold mine plans

Down to Earth No. 72 March 2007

The Toka Tindung gold mine project is now in doubt after strong opposition to Meares Soputan Mining's plans to build an open pit gold mine in a sensitive coastal area and dump mine waste into Rinondoran Bay.

A major blow came when an environmental hearing in August 2006 forced the company to alter its plans to instead use the more expensive option of disposal of tailings on land.

Sidoardjo mud keeps flowing

Down to Earth No. 72 March 2007

The arrival of heavy monsoon rains in Java has made life even more miserable for the thousands of people affected by the East Java mudflow disaster (see DTE 71). The Sidoardjo mudflow, referred to in Indonesian as 'Lumpur Sidoardjo', or simply 'Lusi', which first erupted in May 2006, continues unabated. It has displaced thousands of people, yet, despite overwhelming evidence of criminal negligence, the government has not taken legal action over the disaster.

Changes in mining laws to come into force in 2007

Down to Earth No. 72 March 2007

Two significant changes to national regulations on mining are due to affect the mining industry in Indonesia. The mining minister, Simon Sembiring, said recently that the Indonesian government was intending to approve laws to ensure that more of the mineral resources mined in Indonesia will be processed within Indonesia rather than be shipped abroad. As well as this, new laws are due to come into force in early 2007 that will strengthen the role of regional governments in assigning and approving mining contracts in their regions.

East Java mudflow disaster

Down to Earth No. 71, November 2006


Thousands of people have been forced from their homes since May 29th, when hot mud started spurting from the ground near a gas exploration well in Sidoardjo, East Java. Over the following weeks, villages were submerged, farmland was ruined, businesses and schools closed and livelihoods lost, as the mud inundated the surrounding area. The government has done little to help, although the mud continues to flow, perhaps because the company responsible was owned by a senior member of the government.

Freeport investor quits

Down to Earth No. 71, November 2006

Freeport McMoRan Copper and Gold, operator of the Freeport-Rio Tinto gold and copper mine in West Papua, has been dropped from the US$240 billion Norwegian government pension fund for ethical reasons.