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ocal communities and businesspeople living near the site of copper-gold mining company PT Newmont Nusa Tenggara (NNT) in West Sumbawa, West Nusa Tenggara (NTB), have begun to feel the impact of the mineral ore export ban.

Locals are also anxious over rumors that PT Newmont, a subsidiary of the US-based Newmont Mining Corporation, is planning to close its Batu Hijau mine.

'€œSince the [raw mineral] export ban was implemented, Newmont has severed cooperation with subcontractors and local businessmen, including myself,'€ said Anwar Hadi, who chairs an association of mining contractors (FPLT) in Maluk district, West Sumbawa.

'€œThis, of course, makes us worry. Local businessmen have so far relied on the cooperation with Newmont to repay their debts,'€ he said on Monday.

Anwar, who has been supplying vegetables, fish and dried food to Newmont for years, said that since November last year, the company had drastically lowered its demand for food. Then, in February, it finally stopped the food-supply contract.

According to Anwar, the amount of food supplied to Newmont was worth an average of Rp 300 million (US$25,878) to Rp 400 million per month. Since November, however, that figure had dropped to only Rp 10 million to Rp 20 million per month.

He added that there had been no demand at all for food in March. '€œI'€™m not sure how I can repay installments on my Rp 1 billion loan from Bank Mandiri,'€ he said.

Anwar said more than 40 farmers and fishermen, who sell their agricultural and fishery products to him, shared similar concerns.

Apart from the farmers and fishermen, people who operate transportation to carry Newmont'€™s employees from their homes to the mining site are also feeling the impact of the export ban. They bought their cars with bank loans, but now they can do nothing since the contract was terminated.

The government recently introduced a raw mineral export ban based on the 2009 Mining Law, demanding that miners like Newmont build smelters to process their mined ore before exporting it.

Newmont has not yet built a smelter, however. Prior to the ban coming into effect, the company repeatedly argued that building a smelter was not economically viable.

Anwar said he hoped Newmont and the government would discuss the issue for the benefit of all concerned. According to him, Newmont should not be blamed for not building a smelter.

'€œThe [Mining Law] was issued in 2009, but it seems the regulation was never properly explained. The government should have encouraged Newmont to build a smelter when the law was originally passed,'€ he said.