JAKARTA (Indonesia Today) – About 73 companies have reportedly been granted mineral concessions over the area previously awarded to Vale Indonesia (INCO) in Sulawesi. Most of these concessions were granted in the period of 2010-2012, Kontan business paper reported.

Base on ministry of energy and mineral resources decree No. 483/2010, Vale is required to relinquish four blocks namely Maluputu, Torobulu, Lasolo, and Paopao. By law, other companies could get the areas returned to the State, but has to be done through competitive bidding.

The problem, most of these areas have been granted to some companies. One company, PT Sultra Sarana Bumi, for example, controls 4,108 hectares of Lasalo block in Konawe Utara regency pursuant to a license issued by acting regent Herry Hermansyah Silondae.

Kontan reported that 13 companies are currently sitting over Kolonoda block in Morowali regency, including two companies in production stage. About 34 companies sit over Bahodopi and Sorowako blocks.

Bambang Setiawan, former director general for coal and mineral, said mining over Vale’s concession using licenses granted after the deliberation of Mining Law in 2009 is invalid, because it should be done through competitive bidding process. (ferdi@theindonesiatoday.com)