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Govt suspends nickel mining in Mandiodo Block amid graft probe
The government has suspended nickel mining in the Mandiodo Block amid the AGO's ongoing investigation into corruption related to mining operation permits.
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Energy and Mineral Resources Minister Arifin Tasrif addresses a press briefing about the mining industry’s 2019 performance and 2020 outlook on Jan. 9, 2020 at the ministry in Central Jakarta. (Energy and Mineral Resources Ministry/Energy and Mineral Resources Ministry)
T
he government has temporarily halted all nickel mining operations in the Mandiodo Block in Southeast Sulawesi, Energy and Mineral Resources Minister Arifin Tasrif said on Friday.
The decision came after the Attorney General's Office (AGO) arrested Ridwan Djamaluddin, the ministry’s former minerals and coal director general, as a suspect in a graft case.
"Yes, it is stopped," minister Arifin confirmed on Friday, as quoted by Kompas.com, adding that he would respect the legal process with regard to his former subordinate.
Read also: Price not right: 'Discrimination' blamed for illegal nickel exports
According to an AGO spokesman, Ridwan was allegedly responsible for making changes to a 2018 ministerial decree on evaluating the work and budget plans (RKAB) of companies with mining permits.
The revision allowed at least one mining firm with spent reserves to access an extra 1.5 million metric tons of nickel ore deposits in 2022.
PT Kabaena Kromit Pratama is among the firms to have benefitted from the stipulation, by selling its mining operation permit for state miner PT Antam's 157-hectare Mandiodo concession to unlicensed PT Lawu Agung Mining.
