Expansion of Nickel Mining Concession Harms Locals in South Sulawesi
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16 December 2022 08:12 WIB
South Sulawesi Forum for the Environment (WALHI) Director Muhammad Al Amin said that since the initiation of the concession area, the local indigenous community had never been involved, which has triggered numerous social conflicts to date.
Amin highlighted the crucial livelihood of locals that depend on farming. “The people’s farms and forest areas are now considered within PT Vale’s concession area,” said Amin.
He called for the government to conduct a thorough evaluation of the nickel mining firm’s activities in the East Luwu region, especially considering the company plans to extend its work contract in 2025.
Vale Denies Snatching Land Plots
PT Vale communication head Bayu Aji on Thursday denies allegations that the company seized the lands of the East Luwu customary community. He insisted that the company remains transparent and is bounded by Indonesian and international laws.
“Vale never took away from those who rightly own it,” said Bayu Aji to Tempo on December 15.
He made it clear that the communities within the company’s operational areas is highly respected, which he said aligns with company values that respect the environment and the people who live in it. Bayu said that all the land plots the company manages, which includes concession lands, have complete legal documentation.
The special concession in Sorowako, South Sulawesi spreads across 70,566 hectares which were ratified under the amended work contract on October 17, 2014, was the result of a deal and renegotiation with the Indonesian government.
“In fact, Vale reduced 70,000 hectares of concession areas,” said Bayu. “The PT Vale work contract did not add new areas of land.”
In terms of the South Sulawesi provincial government’s reluctance towards extending the company’s work contract, Bayu said Vale highly respects the opinions of others but will remain committed and focused on fulfilling the company’s obligation according to the law. This is done to maintain a positive investment climate.
He defended that the mining company has contributed to state income, both central and provincial governments.
He pointed out a total contribution to state revenues amounting to Rp16.6 trillion over the last 10 years. Furthermore, PT Vale's taxes and fees in 2021 had almost doubled to US$142.9 million, or the equivalent of Rp2.14 trillion.
"We always comply with the payment terms and applicable tax regulations," said Bayu.
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