T

he Central Sulawesi administration office has set March 1 as the deadline for PT International Nickel Corporation (Incio) to start operation over the concession area in Morowali it was granted on 1969.

“If until March 1 there are no signs of activities, the government should not be held responsible, should local people react against the nickel mining company,” Governor Bandjela Paliudju told The Jakarta Post in Palu on Thursday.

The concession area is located at Bahodopi and Kolonodale in Morowali. The governor said he had discussed the issue with Morowali Regent Anwar Hafid, head of the Morowali mining agency and several officials of PT Inco. “I gave [Inco officials] an ultimatum at the meeting,” he said.

The gubernatiorial office was said to have sent a letter to the Energy and Mineral Resources Ministry, requesting the ministry reduce the company’s concession area by 25 percent, as facilitated by the 2009 law.

“Based on that law, a company that holds concession but does not work on it will have its concession area reduced by up to 25,000 hectares,” the governor said.

PT Inco holds a concession area covering 36,635,36 hectares divided into the Bohodopi and Kolonodale blocks.

Residents from Bungku Tengah and Kecamatan Petasia districts, Morowali regency, filed a class action several days ago against PT Inco with the Central Jakarta District Court. The hearing is scheduled to begin March 10.

“We have filed class action over the concession area at Bahodopi and Kolonodale,” Andi Makkasau, the plaintiffs’ lawyer, said.

He said they were also suing the government, the Energy, Mineral Resources Ministry and Mine and Coal Directorate General, particularly over the extension of a concessionary permit granted to PT Inco, which they deemed was breaching the law.

Data shows the company was first given concession in 1969, which was extended from 1996. Andi said the company in fact exploited its concession rights by instead trading equities through the stock exchange, from which the company was reported to have reaped US$2 billion of funds (Rp 20 trillion).

Andi said the plantiffs were made up of residents living in Bungku Tengah district (27,771 people); Bahodopi district (6,591 people) and Petasia district (17,525 people). He said while the company had yet to start operation, the concession hindered the local people from access to cultivation activities.

When asked the company’s confirmation over the issue, PT Inco spokesman Janus Siahaan said that the company was optimistic about the governor’s pro-investment policy that was contributing significantly to the region and the people of Central Sulawesi.

“We do look to a far-reaching contribution from the concession area. In this regard, we believe the governor always allows room for talks that are expected to yield the result that conforms to the ongoing aspiration,” he said when contacted by the Post.