Protested By The Regent Of Trenggalek, East Java Provincial Government Ensures That The SMN Gold Mine Is Not Final

Head of East Java DPMPTSP Aris Mukiyono explains the plan to mine a gold in Trenggalek (ANTARA)

SURABAYA - The East Java Provincial Government has confirmed that the plan to exploit the gold mine in Trenggalek Regency by PT. Sumber Mineral Nusantara (SMN) is not final.

"Until now, PT. SMN is prohibited from conducting production operations, and has not even taken a production operation mining business permit (IUP-OP) at the provincial government," said Head of the East Java Investment and One-Stop Services (DPMPTSP) Aris Mukiyono said as quoted by Antara in Surabaya, Sunday, March 14th.

Aris emphasized that the SMN has also not fulfilled its obligation to submit reclamation and post-mining guarantee costs totaling USD 939,221.15 as attached in the recommendation clause before SMN conducts production operations (OP).

This means, said Aris, that he does not have the right to carry out mining production operations because he is facing internal problems from a financial side.

In addition, Aris said that there is a need to adjust the mining area according to the regional spatial plan in Trenggalek Regency.

"If there are aspirations of the community, most of which reject gold mining activities there, it is necessary to review the licensing process that has been passed by PT. SMN," said Aris.

Based on information from the East Java DPMPTSP, the chronology of mining permit applications in Munjungan, Dongko, Watulimo, Kampak, Suruh, Pule, Tugu, Karangan, and Dongko districts dates back to 2005.

In that year a mining permit was issued by the Regent of Trenggalek at that time, to be precise on December 28, 2005, with a mining area of 17,586 hectares.

In this permit, Trengggalek Regency gave a period of two years from the time it was stipulated.

In 2007, SMN applied for an extension and additional area permit, which was approved by the Regent of Trenggalek on 14 December 2007 with a change of 30,044 hectares of land.

In the following year, the request for mining permits reached 29,969 hectares.

However, in 2014, with the Trenggalek Regent Decree Number 545/172/406.027/2014 dated February 21, 2014, the Trenggalek Regency Government imposed a temporary suspension of mining drilling plans by PT. SMN.

In that time frame, there was a change in the mining licensing authority which was originally in Trenggalek Regency which was transferred to the East Java Provincial Government.

Due to the change in the transfer of permit authority, SMN submitted a request for technical recommendations for the addition of the mining business permit period through the attachment letter of the Director of PT. SMN on September 8, 2015, and approved by the East Java Province Investment Board on December 16, 2015.

Based on a technical study conducted by the East Java Energy and Mineral Resources Office and the East Java Environmental Service, on June 24, 2019, the East Java P2T-DPMPTSP issued a production operation mining business permit (IUP OP) to SMN.

However, based on technical recommendations from the ESDM Agency, the IUP OP SMN for 10 years has an area of 12,813.41 hectares or not like the area in early 2005.

"In the technical recommendation clause, before conducting the OP, SMN must convey the costs of reclamation and post-mining guarantees, which have not been fulfilled until now," said Aris.