Overlapping permits at Vale?s former mining areas

Overlapping mining areas remain a major problem in the development of the country?s mining sector as indicated in mining permits issued by local government in mining areas formerly owned by Vale Indonesia, previously known as INCO.

Kontan business daily reported that at least 70 companies have claimed that they secured permits to explore a 28,000 hectares mining area formerly owned by Vale. The areas located in Maluputu, Trobulu, Lasolo and Paopao blocks on the Sulawesi island were released by Vale several years ago to fulfill the government?s regulation which limited the concession area to only 100,000 hectares.

The local government planned to auction the areas to investors but could not launch the tender because the mining areas were already claimed by at least 70 companies.

The same problems also occurred in Vale Indonesia?s former mining areas in Morowali, South Sulawesi. At least 13 companies also claimed they owned the concession in the mining area.

In addition to former mining areas, a number of companies have also claimed mining areas owned by Vale. According to the newspaper, at least 73 companies had claimed Vale?s seven mining blocks areas. The companies which claimed that they owned the mining areas said that they received mining permits during the period between 2010-2012. (*)