WALHI of South Sumatra calls for the closure of PT Barisan Tropical Mining / Laverton Gold’s mine

On January 22, 2000, WALHI of South Sumatra, a local NGO, issued its press release calling for the shut down of PT Barisan Tropical Mining (PT BTM)/Laverton’s Gold and PT Barisan Sumatra Mining (PT BSM), which shall continue the operations of PT BTM. The press release was issued in response to the news stating that PT BSM is planning an expansion/relocation of its mining activities taken place on the Muara Rupit and Rawas Ulu districts because the 11,750 hectares-wide area, which previously was mined by PT Barisan Tropical Mining (PT BTM) is estimated to run out of ores (gold) by March 2000. (Sumatra Ekspres daily, 20 December, 1999)

PT BTM is operating primarily for gold and silver as its side production. Investment value is estimated to be US$ 5,536,924. Entire budget planning is 61 billion rupiahs with 100% shares own by Laverton Gold of Australia. License owned is General Mining Contract of Work dated 12 December 1986 with preliminary area width of 95,250 hectares (Ha)

According to investigation results conducted by WALHI of South Sumatra, PT BTM, whose Contract of Work is dated back since December 2, 1986, has been involved in numerous violations since the beginning of their operation in the area. The said violations include failed to ask the permission of the locals in their survey in 1982; giving severely unfair compensations to the locals for lands used in its exploitation period in 1991; contaminating the Tiku river systems which runs through 8 villages causing the loss of water resources of more than 15, 455 villagers ever since its Early Production period in 1997.

These results were also confirmed by the statement of the Director of PT BTM/PT BSM, Boyke Abidin “From the past experience of PT BTM, there are two negative impacts resulting from mining projects, which are environmental pollution and the social impacts suffered by the communities living around the mining location.” (Sumatra Ekspres daily, 21 January 2000).

Thus, the organization which also representing the interests of communities living around the mining area hereby concluded that mineral mining in the area must no longer proceed. The conclusion derived from the consideration that the Indonesian insular ecosystem is too vulnerable for further expansion of the extractive industry. Furthermore, The contribution of mineral mining revenues to the national economy is hardly justifiable in comparison to the destructions of islands, littoral ecosystems, and the abrupt life quality decline of peoples living in mining areas, the loss of livelihoods and basic rights. Therefore, here are their calls in details WALHI of South Sumatra hereby urges

The President to temporarily decommission all mining activities of PT Barisan Tropical Mining in Musi Rawas immediately until the said company improved the whole production processes including its processing facilities and machineries in compliance with zero emission requirements and fulfil its social responsibilities. The same requirements must also apply to PT Barisan Sumatra Mining (PT BSM), which shall continue the operations of PT BTM. Should by reason of production cause and others, PT Barisan Tropical Mining choose not to comply to the most stringent environmental standards in operating in Musi Rawas, we, for reasons of environmental and human safety in South Sumatra, hereby demand that the company's Contract of Work be revoked immediately. Same requirements must also apply to PT Barisan Sumatra Mining (PT BSM), which shall continue the operations of PT BTM. Walhi of South Sumatra demands that as the temporary closure takes place, or should PT Barisan Tropical Mining had to abandon its operations, the Company must ensure that fair compensations are given to all its workers, the land owners and the affected communities. Same requirements must also apply to PT Barisan Sumatra Mining (PT BSM), which shall continue the operations of PT BTM.

In support of the issue, on 3 February 2000, The Palembang Legal Aid Foundation (LBH PALEMBANG) has released their position paper calling all related parties and the related government institution—Local Environmental Impact Control Agency (Bapedalda)—to give serious and immediate attention to the matter. Up to the release of this media, further response on the press release, both from the government and the company has not been received.

SOURCE “Siaran Pers Hentikan Eksploitasi Sumber Daya Mineral oleh PT BTM/PT BSM di Bumi Silampari”, by WALHI South Sumatra

For further information: Contact JATAM
(Indonesian Mining Advocacy Network)

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