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reenpeace Indonesia, a subsidiary of global environmental watchdog Greenpeace International, recently published a six-month investigation report on environmental damage caused by coal mining in East and South Kalimantan.

The investigation focused on the coal mining activities of Banpu, a Thailand-based company, which it says have caused negative environmental impacts, such as landscape changes, productive agricultural land degradation and the creation of giant mining holes.

In line with Banpu’s planned mining expansion in Southeast Asia, including Indonesia, Greenpeace expressed fears that there would be further environmental degradation in the areas of its mining sites.

“Banpu’s current operations have triggered environmental degradation in the surrounding areas. Yet, it has shown no intention of repairing the damage. We cannot imagine [what will happen] if Banpu eventually secures extra funds to expand its business,” Greenpeace climate and energy campaigner Arif Fiyanto told The Jakarta Post on Wednesday.

Quoting media reports, Arif said Banpu was expecting additional funds after releasing shares through an initial public offering (IPO) on the Thailand Stock Exchange in late December.

Banpu’s coal business in Indonesia is run by PT Indo Tambangraya Megah Tbk (ITM), which also controls several energy companies in Kalimantan. Banpu holds a 65 percent stake in ITM.

The Greenpeace report suggests two Banpu group subsidiary companies are responsible for the environmental damage in the two provinces: PT Kitadin and PT Indominco Mandiri.

“Residents of Kerta Buana village in East Kalimantan lost 50 percent of their farmland due to PT Kitadin’s mining activities,” said Greenpeace coal mining campaigner Bondan Andriyanu.

He added that the company’s mining pits had caused water shortages in the village, forcing residents to put their farming activities on hold during the dry season. “It has contributed to a significant decline in rice yields; from 10 tons to 4 tons per year.”

The Greenpeace report also claimed that PT Indominco Mandiri’s mining activities had caused water-quality degradation in the upstream section of East Kalimantan’s Santan River, and that residents had suffered physically and financially as a result.

“Most rivers there are polluted, with impacts including declining fish catches and residents suffering from skin diseases. Also, mining has not brought rising prosperity, on the other hand, local residents have become poorer,” Arif said.

The Environment and Forestry Ministry’s director general for law enforcement, Rasio Ridho Sani, said that coal companies that had caused environmental damage could have their operations suspended.

The management of ITM defended the company, saying that it had been operating in accordance with its permits and complying with the existing regulations.

“All ITM’s mining plans, including its Environmental Impact Analysis [AMDAL], have always been communicated through a public hearing and discussed transparently engaging all stakeholders,” ITM management said in an email sent to The Jakarta Post on Thursday evening. (wnd)