Theindonesiatoday.com - Nur Alam, regent of Southeast Sulawesi province, argues PT International Nickel Indonesia Tbk (INCO) to stop its nickel mining operation as the company has violated the contract agreement, Investor Daily reported this morning.
He said the government of Southeast Sulawesi province had obliged Inco to build nickel smelter in Pomalaa. "Inco is not allowed to sell raw materials as the mining area awarded to Inco aims to supply nickel to the smelter," Nur Alam said.
He added Inco has also mined in the protected forest area without government's license.
Inco had cancelled plan to build nickel smelter in Pomalaa in May 2009 as nickel price was too low, making the smelter as uneconomic investment.
Inco targeted the smelter to produce 30,000 tons of nickel per year. The smelter construction is expected to cost US$1.2 billion and to commence production in 2014.
Nur Alam said President Soesilo Bambang Yudhoyono has argued to take legal action to arbitration court against Inco.
He added Inco has also mined in the protected forest area without government's license.
Inco had cancelled plan to build nickel smelter in Pomalaa in May 2009 as nickel price was too low, making the smelter as uneconomic investment.
Inco targeted the smelter to produce 30,000 tons of nickel per year. The smelter construction is expected to cost US$1.2 billion and to commence production in 2014.
Nur Alam said President Soesilo Bambang Yudhoyono has argued to take legal action to arbitration court against Inco.
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