Land Management Mining Reclamation Bond

1.1.2.3. Mining Supporting Facility

Both of surface and underground mining methods operation are supported by several interrelation facilities, such as; processing plant, official buildings, warehouse, workshop, stock pile, settling pond, tailing pond, polishing pond, dumping area, roads, emplacements, erosion controls, dock, jetty, conveyor, railway-tract, water channel, bridges, electricity transmission, dormitory, fencing and other related various ones. Figure 1.3 The Lay Out of a mining facility to support mining operation Adopted from http:www.nrcan.gc.cammsmining

1.1.3. Land Management

Based on the character where the whole excavation is opened, surface mining is more extensive on spatial opening than underground mining, and tends to evoke morphological change. The surface mining is critical, therefore suitable planning and operation to synchronize both of environmental and economical interests on land usage in exploitation is required. Exploitation is one of mining operation stages, which mostly related to spatial opening, since the purpose of producing and utilizing minerals. 8 Surface mining method exploitation stage occupies several subsequent steps as follows: a. Land clearing, it’s an attempt to eliminate working area of vegetation coverage. b. Topsoil removal, to strip an upper part of earth layer called humus, then be loaded, hauled and stocked on certain area or be spread directly to a reclamation area, as a growth medium to accelerate re-vegetation. c. Overburdenwaste rock removal is to strip or to dig the covered rock layer or host rock of valuable minerals, then be loaded and hauled to be dumped either on permanently or provisional dumping areas, or even be dumped directly to a mined out area as reclamation filling material. d. Minerals deposit excavation, then be loaded and hauled to processing plant stockpile, becoming feed for processing and or refiningpurification process. The mineral deposit, which at least one of its metal content could be extracted economically, is also called ore. e. Back filling, it’s the reclamation process, especially conducted in coal mining by returning the over burden or the waste rock, whether derive from the dumping area or directly from the active area to the void mined area, then being re-contoured, covered by humus, and re-vegetation. Figure 1.4 The land management mechanism of a back filling surface mining method Adopted from Skelly and Loy, 1975 9

1.1.4. Mining Reclamation Bond

Due to the prudent principle of the Government on a mining company, by regardless its principal and scale, the company is obliged to insure any spatial opening during their operation period by allocating appropriate fund in a certain Bank, as Reclamation Bond. Every mining company is compulsory to reclaim their mined area during operation and it will have had to finish before decommissioning. The reclamation should be agreed by Local Regional Government, whether it is fit with existing General Planning of Regional Land- use RUTRD or diverting to another more benefit one. The bond should be an adequate amount; therefore on default condition, it would be sufficient for any third party to do so. This is determined based on the Government regulation, which has been stipulated by Directorate General of Geological and Mineral Resources Decree DGMR - Department of Energy and Mineral Resources DEMR No. 336.K271DDJP1996 concerning Reclamation Bond. The Reclamation Bond mechanism is proposed by the company to be consulted with the government in order to achieve an agreement. The Reclamation Bond that has been agreed then being saved by the company in a certain Bank on behalf of Head of Regional Government, prior DGMR representing Minister of DEMR. The company could withdraw the bond when any requirements are satisfied, otherwise as default condition the Government will conduct an action to determine a third party to do so. The amount of bond is based on annual company planning pertain mined area reclamation for every five years period, which consist of direct and indirect cost. These costs are allocated for appropriate mined and disturbed area management, mobilizing material sources, procurement vegetation types, engineering method and equipment. Concerning spatial management related to engineering method and equipment, the fund determination relies on equipments and employment cost, which has unique characteristics such as bulldozer, loader, dump truck, excavator, grader, etc. These could be considered as effective and efficient whether single or combination operational. Determining the Reclamation Bond needs both skill and expertise, otherwise it would consume time, even perfunctorily. 10 Due to Regional Autonomy policy, since year 1999, the actual mineral resource management is belonging to the regional authority. However, in transition period, these would raise some technical problem, particularly in expertise-required aspects in determining the Reclamation Bond. The Central Government realizes that there is a need to provide a supporting tool to accelerate knowledge transformation and to improve the capability of Regional Government human resources. This tool whether in term of a guideline or an application program insists to be developed for synchronizing the mining management policies between Central and Regional Governments. Dealing with the necessity of Reclamation Bond assessment tool, this study attempted to develop a decision supporting system DSS approach to support fast and objective problem solution for evading disputability, namely Mining Rehabilitation Bond System MR BoS. This is an interactive, flexible, and adaptable computerized based information system, which re-useable and be replicable tool by using model and knowledge for solving comparable projects and replicated for concerned users. The components of Mining Rehabilitation Bond System, whether variable, parameter and criterion are input into the system, to be processed within available formula eventually resulted an adequate amount of fund and rendering interrelated maps. In principle this yield will have been a main consideration reference for the Reclamation Bond decision maker.

1.2. Problem Identification

Reclamation Bond is crucial policy in mining industry, which needs prudential and peer principal of both company and government as this decisive to drive the post mining environment condition. It has to be proposed and allocated by a company before conducting any production activity, after through evaluation by the government. Mining is an investment, which limited by time and production frameworks. Therefore if this were constraint, either would delay to inflict financial loss of company operations or be determined perfunctorily, which would be flaw mining environmental image. In this case both skill and expertise of government officials are required, because Reclamation Bond is an integration of mining principle, environmental 11