24 Years Not Doing Production Activities, Commission VII Urges Government To Revoke PT Sorikmas Mining's Permit

JAKARTA - Commission VII of the DPR RI urges the government to revoke the permit for PT Sorikmas Mining because it has obtained a contract of work permit for 24 years, but does not carry out production activities.

In addition, Commission VII also assessed that the operational area of PT Sorikmas Mining is also adjacent to illegal mining in Mandailing Natal Regency, North Sumatra. Finally, environmental damage is inevitable.

In an important point at the conclusion of the Commission VII meeting chaired by the Deputy Chairman of Commission VII DPR RI, Maman Abdurrahman, it was stated that PT Sorikmas Mining had abandoned its contract of work covering an area of 201,600 hectares without any production activities.

Meanwhile, member of Commission VII DPR RI from the Democratic Faction Muhammad Nasir accused the KK held by PT Sorikmas Mining as only being used as a portfolio to increase shareholder share prices in the capital market.

"Clearly there is no benefit for the community and the state because this is lending that is layered to increase stock prices," said Nasir.

President Director of PT Sorikmas Mining Boyke Poerbaya Abidin argued that the existing gold reserves during exploration were considered uneconomical, even though his party admitted that they had drilled 160 holes.

"The average cost of one hole is IDR 3 billion over the past year," Boyke said in a Hearing Meeting with Commission VII, quoted on Tuesday, May 24.

It has also admitted that it has conducted an exploration feasibility study.

However, Commission VII of the DPR still adheres to its recommendation that the Ministry of Energy and Mineral Resources revoke the mining permit that has been bagged by PT Sorikmas Mining since February 19, 1998, which is a generation VII permit.

"The House of Representatives Commission VII urges the Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources to improve guidance and supervision of the implementation of mineral and coal mining business activities carried out by business license holders throughout Indonesia," said Maman, reading out important points at the conclusion of the meeting.

Previously, PT Sorikmas Mining was in the spotlight because of its location close to an illegal mining area which killed 12 female miners.

However, the Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources (ESDM) Ridwan Djamaluddin revealed that the location of the mine is far outside the working area of Sorikmas Mining.

"The location of this landslide is outside, once I said it was outside the work area of the PT Sorikmas Mining company," he said.