Govt to protect small-scaled mining firms

The government is preparing a ruling to empower small and medium-scale enterprises (SMEs) in the mining sector, which is dominated by big companies and illegal mining firms, according to a senior official at the ministry of mines and energy.

Director general for general mining Suryantoro said in Bandung on Tuesday that at present of small and medium scale companies faced difficulties to enter the mining sector due to the presence of big companies, which either operated illegally or used cooperatives to disguise their operations.

"The regulation is being prepared and? the main idea of the new regulation is to prevent SMEs from being cheated by big bosses," he said, adding that the regulation would also imposes a stricter punishment against those who operated in the mining sector without proper permits.

He said the illegal companies, which were often backed by local authorities in carrying their activities, mostly did not pay attention to the environment. (*)