Palu:

Rio Tinto is exploring for gold within the boundaries of a protected forest reserve in Indonesia, and plans to develop a gold mine there despite community opposition and environmental concerns. Rio Tinto is dismissive of opposition and admits lobbying the government to move the boundary of the reserve to excise the project area.

Poboya-Paneki Forest Park (Tahura) is a protected conservation reserve near to the city of Palu in central Sulawesi, which is being traditionally managed by local communities. It is a valuable nature reserve and is crucial as a water catchment area, contributing to Palu's drinking water supply.

The gold project, officially named 'The Palu Prospect' is being developed by PT Citra Palu Minerals which is a 90% owned subsidiary of Rio Tinto Indonesia. It is in the exploration phase, with at least 14 drill holes having been made. Mining Monitor spoke with Mr Muhardjo, a Rio Tinto project manager who confirmed that mining exploration activity including drilling has occurred within the Tahura, after it was declared a protected area.(1)

Mr Muhardjo has also confirmed that Rio Tinto is in negotiations with the local government to shift the boundary of the park to facilitate mining the estimated resource of 18 million tons of ore containing around 3.4g gold per ton. In any case, Mr Muhardjo sees no problem with Rio Tinto conducting mining activity in protected areas, including national parks, "as long as government regulations are observed."

The proposed mine would displace traditional owners, depriving them of land, forest and other natural resources. The project has prompted a strong written declaration of opposition by the Poboya community, and is opposed by four local and national NGOs. Rio Tinto's project manager dismisses community opposition however, saying "Greenies are protesting. But that always happens, greenies are protesting all over the world."

Environment groups in Australia have tentatively welcomed Rio Tinto's decision to put the Jabiluka uranium project on ice, due in large part to community opposition.(2) Jabiluka has been hotly opposed not just because it is a uranium mine, but because the project area is excised from Jabiluka National park, and opposed by Jabiluka's traditional owners. Unfortunately, it looks like Rio Tinto hasn't transferred the Jabiluka lesson to its Indonesian operations.

(1) phone call with Mr. Muhardjo, Rio Tinto Indonesia management at the Rio Tinto Palu Project (exploration geologist) 28th March 2001. (2) John Phaceas, "Rio waits for a new era on uranium", The Australian, 23 March 2001.