The Jambi provincial administration will investigate allegations that state mining company PT Aneka Tambang ( Antam ) misused its exploration permits by conducting commercial exploitation mining.
"We will find out whether the company's activities are still inline with its exploration license or in fact at the exploitation or commercial stage," Jambi Energy and Mineral Resources Agency head, Azwar Effendi, said Friday.
He said the agency would request help from the Geology Agency, the Energy and Mineral Resources Ministry's Inspectorate General and Mineral Inspectorate, as well as PT Antam.
"If the investigation finds that PT Antam had already carried out the exploitation stage, it can be fined Rp 10 billion per year," Azwar said.
However, he said, many parties did not understand that exploration and exploitation stages in gold mining both include taking rock samples in the mining concession area.
"During the exploration stage, rock samples are analyzed in laboratories to determine the gold content and its grade," he said.