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
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management planning, and cost estimation. The mining principle is also involved in form of land management, which mostly employs mechanical earth moving as
well. Environmental management planning is a part of Environmental Impact Assessment, which performs the steps of mined out area management fit with post
mining area usage. The cost estimation is based on any economical calculation in conducting both land and environmental managements technically in effective and
efficient manners. Regional Autonomy provision requires appropriate official capacity
building, related to their authority and responsibility. Consuming time and costly are common obstacles of Regional Government in improving their official
capacity. Based on this reason, some of them might release a contradictive Reclamation Bond provision according to their perception eventually to increase
regional income. Therefore, it is necessary to develop an integrated and user- friendly tool to determine Reclamation Bond.
1.3. Objectives
The main objective of this project is to develop a Mining Rehabilitation Bond System, with specific purposes are:
1. To provide the additional tool for the Government as Decision Support System to evaluate any company planning concerning cost estimation in
accordance with spatial management and material removal through any equipment employment, ether suitable or not to be agreed with.
2. Determining adequate amount of fund, which has to be saved by a mining company in certain Bank as Reclamation Bond, which classified into;
- Direct cost; mine facilities removal, land structuring, re-vegetation, erosion control, acid mine drainage mitigation; and
- Indirect cost; mobilization and demobilization of heavy equipments, establish reclamation planning, administration and contractor
profitability as reclamation doer.
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II. LITERATURE REVIEW
Rehabilitation bonds and bank guarantees are broadly accepted as instruments available to governments to ensure completion of rehabilitation of
mined areas. Bond and guarantees are seen to provide a financial incentive for the proper completion of rehabilitation work and to ensure that the cost of
rehabilitation will be met by the miner rather than through public funding McGill and Fox, 1998.
Several terms are commonly used to express this bond and guarantees including rehabilitation guarantee, rehabilitation bond, reclamation bond,
performance bond etc. In this case, the differences between rehabilitation bond and reclamation bond merely by the author to distinguish between the name of
application and the Government Provisions which has legal aspect. The Mining Rehabilitation Bond System is designed to support decision making of
Reclamation Bond.
2.1. Reclamation Bond Provision
According to Director General of Geological and Mineral Resources
Decree number: 336.K271DDJP1996 concerning Reclamation Bond, asserted;
“Reclamation Bond is a definite fund, which is provided by a mining company as a guarantee in conducting reclamation on mined area”, though “reclamation is an
effort to restructure and improve condition upon a disturb land that is impacted by mining operation to fit either with previous or divert land use to be more useful
one”, and “the adequate amount of bond is based on annual company planning pertain mined area reclamation for every five years period, with the premise
would be conducted by the third party”. Realization of Reclamation Bond is based on the “Guideline of
Established Annual Planning of Environmental Management regarding Determining of Reclamation Bond DEMR, 1996”. The components of
Reclamation Bond could be classified into two main components those comprise of direct and indirect costs regarding establishment of company annual
environmental management as basic of estimation.
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