TRADE ON FERRUGINOUS SAND MINING

INTRODUCTION

CHAPTER I
INTRODUCTION

1.1. Background

Development and improvement of mining sector in Regency will now be

directed completely to an effort in mining resources management that is
effective and efficient, having Archipelago concept, welfare improvement for
people aroud the location of activity and improvement of regional income to
pay for its development.

Potential of ferruginous sand mineral is found in along the beach on Cianjur

Regency, from the border area with areas in Sukabumi Regency, areas in
Agrabinta sundistrict to the areas in Cidaun subdistrict.

In the future, the existence of opportunity in national private investment on

mining sector in the areas in Cianjur Regency step by step will be conducted
by developing downstream industries in regard to the ownership of mineral
potential and industrial mineral.

The presence of investment opportunity in the ferruginous sand mining sector

in Cianjur Regency that has fairly prospective ferruginous sand reserve has
encouraged PT. Megatop Inti Selaras to make an effort to do exploration
research about ferruginous sand mining in shoreline on Cianjur Regency. The
intended location (study location) are in Sinarlaut village, Mekarsari village,
Tanjungsari village, Wanasari village (Agrabinta subdistrict); Hegarsari
village, Kertasari village, Talagasari village, Sirnagalih village, Saganten
village, Jayagiri village (Sindangbarang subdistrict); Sukapura village, Cisalak
village, Jayapura village, Kertajadi village (Cidaun sundistrict), Cianjur
Regency and doing activity plan for production operation in ferruginous sand
mining.

Along with the existence of regional autonomy in the form of partly rights
transfer from central government including the authority from Department of
Mining of Republic of Indonesia to regional government, activity initiator
(PT. Megatop Inti Selaras) has now got Exploration lisence to plan the

PT. MEGATOP INTI SELARAS I-1

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

exploration to ferruginous sand mineral located in some areas in Agrabinta

subdistric, Sindangbarang subdistrict and Cidaun subdistrict by the area based
on the exploration lisence for about 15.0000 Ha and according to the plan, this
activity will be supported by the existence of production operation in
ferruginous sand mining (mineral processing), development of electricity
generator, jetty development, and other supporting facilities.

The activity plan is predicted to arise negative impact towards components of

physical-chemistry, biological environment, social economics and socio-
culture also social health. However, the presence of activity plan doesn’t limit
for the possible positive impact in regard to the employment of local workers,
new business opportunity, etc.

Realizing the importance of environmentally sound development, the

ferruginous sang mining activity will be conducted by keeping paying
attention on the environmental principle. Related to the ferruginous sand
mining activityin study location in coastal and river border area, the impact
from activity plan will arise important impact towards environmental
components so the activity will make reference to the Presidential Rule
Number 32 year 1990 about management of conservation area and other
relevant regulations such as: paying attention to the existence of river border,
coastal border, the existence of flora habitat that its environmental function is
for breakabrasion, protected fauna habitat, the existence of country road that
link up Sindangbarang to Cidaun that is near coastal area, the existence of
tourism factor and other factors.

Besides that, this research is referenced to the Governmental Regulation

Number 27 Year 1999, about Environmental Impact Analysis and Rule of
Environmental Ministry Number 11 Year 2006 about Types of Business and
or AMDAL obligatory liability for general mining activity with over than 200
Ha area or the area of cumulative opening land is same with or larger than 50
Ha/year, the activity is obliged to do AMDAL research (ANDAL, RKL &
RPL).

PT. MEGATOP INTI SELARAS I-2

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

1.2. Purpose and Benefit

Purpose and benefit of ferruginous sand mining activities tha will be

conducted by PT. Megatop Inti Selaras with the land area based on the 15.000
Ha mining lisence is to identify the necessity of mineral for various activities
provided by local natural resources in study location. Now the necessity upon
ferruginous sand mineral is increasingly improved along with the demand of
cement that is also incresingly improved.

The objectives to fill the need of ferruginous sand mineral can be seen below:
a. To help governmental program in Cianjur Regency in providing
ferruginous sand mineral that can be used for steel industry, besides
cement industry and others.
b. To add sea transport vehicle by building jetty facilities/ quay and land
transport vehicle as the supporting facilities in mining.
c. To improve the power and realibility of electricity by building electricity
generator for the need of activity plan.
d. To develop regional development in South Cianjur area that is more left
behind that the North part of Cianjur Regency.
e. To open and enlarge job opportunity and business opportunity.
f. To distribute and improve income of society around the activity location.

2. Benefit

The project plan for ferruginous sand mining along with the governmental
program to use natural resources to meet the domestic needs and for the
purpose of export so that it can encourage PT. Megatop Inti Selaras to open
concession to be mined in the area of concession based on the determined
license.

The ferruginous sand mineral has big potential and can be used as tthe raw
material to make steel, the mixture between industrial raw material of cement
and others as explained above hopefully can employ local workers, improve
regional income and other benefits.

PT. MEGATOP INTI SELARAS I-3

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

In the utilization of ferruginous sand, Regional Government of Cianjur

Regency has given some opportunities escecially for private parties to take
part in mining field especially ferruginous sand, so both (regional and central)
government togetherly get its benefit based on the determined rules.

1.3. Valid Laws and Regulations Related to the Business and/or Activity Plan
and Environment.

The laws and regulations underlying the implementation of ANDAL study of

production operation in ferruginous sand mining are:

Tabel 1.1.
The laws and regulations related to the activity plan

No The laws and regulations Reason for mentioning regulation

Laws
1 Law of Republic of Indonesia Number 5 Related to the activity plan that
year 1960 about Agraria Basics. contains procedure for land
application to the regional
government.

PT. MEGATOP INTI SELARAS I-4

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

No The laws and regulations Reasons for mentioning regulations

2 Law of Republic of Indonesia Number 5 Related to the industry activity plan
year 1984 about Industry (steel industry) that will be built as
facility to process ferruginous sand
mining.

3 Law of Republic of Indonesia Number 5 Related to the industry activity plan

year 1990 about Conservation of vital that is in local protected and coastal
Natural Resource and its ecosystem. area.
4 Law of Republic of Indonesia Number 9 Related to the industry activity plan
year 1990 about Tourism that there are tourism facilities in its
surrounding.
5 Law of Republic of Indonesia Number 3 As the guarantee to give assurance to
year 1992 about Workers Social the workers involved in the project
Guarantee activity and the workers will get their
rights as a labor.
6 Law of Republic of Indonesia Number Related to the industry activity plan
21 year 1992 about Industry Undang- that will build harbor or jetty
Undang Nomor 21 Tahun 1992 tentang facilities in the mouth of Cibuni
Sailorship River.
7 Law of Republic of Indonesia Number As the reference in protection for
13 year 2003 about Labor labor involved in building activities
in study location.
8 Law of Republic of Indonesia Number 7 Related to the industry activity plan
year 2004 about Water Resource that there are surface water resources
(sea and river water) in study
location.
9 Law of Republic of Indonesia Number Related to the policy that gives an
22 year 1999 jo Law of Republic of authority to the Local Government
Indonesia Number 32 year 2004 about
Regional Government
10 Law of Republic of Indonesia Number As a guideline to implement the
26 year 2007 about spatial. building/development activity in
ferruginous sand mining.

PT. MEGATOP INTI SELARAS I-5

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

11 Law of Republic of Indonesia Number Related to the industry activity plan

27 year 2007 about coastal zone and that is in coastal zone.
small islands management
12 Law of Republic of Indonesia Number 4 Related to the industry activity plan
year 2009 about Mineral and Coal that is in ferruginous sand mining.
Mining
13 Law of Republic of Indonesia Number Related to the industry activity plan
22 year 2009 about Traffic and Road that use road body during the
Transport construction and operation stages/
supporting activities.
14 Law of Republic of Indonesia Number Related to the laws and regulations
32 year 2009 about Environmental about Environmental Protection and
Conservation and Management Management.
15 Law of Republic of Indonesia Number Related to the laws and regulations
36 year 2009 about Health about health.

No The laws and regulations Reasons for mentioning regulations

Governmental Regulations
16 Governmental Regulation of Republic Related to the industry activity plan
of Indonesia Number 32 year 1969, about ferruginous sand mining.
about Implementation of Law Number
11 year 1967
17 Governmental Regulation of Republic Related to the industry activity plan
of Indonesia Number 35 year 1991, that that there are water surface
about river. resources in its surrounding.
18 Governmental Regulation of Republic Related to the industry activity plan
of Indonesia Number 82 year 1999, that will build sea/jetty transportation
about Sea Transportion or quay in the Mouth of Cibuni River
19 Governmental Regulation of Republic Related to the industry activity plan
of Indonesia Number 27 year 1999, that needs AMDAL Research.
about Environmental Impact Analysis
20 Governmental Regulation of Republic Related to the industry activity plan
of Indonesia Number 41 year 1999, that causes impacts in the increasing
about Air Pollution Control. of dust level as the result of tools and
materials mobilization, and

PT. MEGATOP INTI SELARAS I-6

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

transportation of ferruginous sand

mineral.
21 Governmental Regulation of Republic Related to the partly governmental
of Indonesia Number 25 year 2000, authority that is in the level of
about Governmental Authority and Province and City/Regency.
Provincial Authority as an autonomous
regions.
22 Governmental Regulation of Republic Related to the industry activity plan
of Indonesia Number 69 year 2001 that will build sea/jetty transportation
about harbour affairs. or quay in the Mouth of Cibuni
River.
23 Governmental Regulation of Republic Related to the industry activity plan
of Indonesia Number 82 year 2001 that will cause the increase of sea
about water quality management and water turbidity and river water
quality near the mouth as the result
water pollution control
of ferruginous sand mining activities.
24 Governmental Regulation of Republic Related to the industry activity plan
of Indonesia Number 51 year 2002 that will build sea/jetty transportation
about shipping or quay in the Mouth of Cibuni
River.
25 Governmental Regulation of Republic Related to the industry activity plan
of Indonesia Number 16 year 2004 for the transfer process of rights
above the land and permission for
about land use management
location to be used for activity plan.
26 Decree of President Number 32 Year Related to the industry activity plan
1990 about management of protected of ferruginous sand mining that is in
areas coastal border area and belongs to
protected area.
27 Regulation of Mining and Energy Related to the industry activity plan
Ministry Number 01/P/201/M.PE/1986 about ferruginous sand mining.
about tentang Pedoman Pengelolaan
Pertambangan Rakyat Bahan Galian
Strategis dan Vital guidelines for the
management of strategic and vital

PT. MEGATOP INTI SELARAS I-7

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

mineral mining (Type A and B)

28 Governmental Regulation Number 51 Related to the industry activity plan
year 2002 about Shipping that will build sea/jetty transportation
or quay in the Mouth of Cibuni
River.
29 Governmental Regulation Number 23 Related to the industry activity plan
year 2010 about Mining Activity about ferruginous sand mining.
Implementation
No The laws and regulations Reasons for mentioning regulations
Ministerial Decrees
30 Decree of Minister of Communication Related to the anticipation to the
Number KM 215/AL 506/PHB-87 about activity plan for loading and
procurement of ship waste reception discharging in jetty location/ quay in
facilities study location.
31 Related to the anticipation to the
Decree of Minister of Communication
activity plan for loading and
Number KM 86 Year 1990 about
discharging in jetty location/ quay in
prevention of pollution by oil from
study location.
ships
32 Decree of minister of state Related to exhaust from vehicles used
environmental affairs Number 35 year for tools and medium mobilization,
1993 about threshold of exhaust and transporataion of minerals.
emissions from motor vehicle.
33 Decree of Head of Bapedal Number Related to the deciding process of
Kep-056 year 1994 about Guideline for important impact standard from a
Important Impact Standard. activity plan.
34 Decree of minister of mining and Related to the activity plan of mining
energy Number 555.K/26/M.PE/1995 that needs safety and working welfare
about safety and working welfare of the for labor.
general mining
35 Decree of minister of mining and energy Related to the activity plan of mining
Number 1211.K/008/M.PE/1995 about that has potential to arise
Prevention and Control of Pollution and environmental damage so that it
Environmental Degradation on Mining needs some efforts for prevention and
Activities overcoming environmental
degradation and pollution in general

PT. MEGATOP INTI SELARAS I-8

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

mining activities.
36 Related to the activity plan that is in
Decree of minister of state
coastal zone that is necessarily
environmental affairs Number 45 Year
conducted by applying environmental
1995 about sustainable coastal program
priciple.
37 Decree of minister of state Related to the noise impact from the
environmental affairs Number operation of numbers of vehicle used
48/MENLH/11/1996, standard noise in the mobilization of tools-material,
level transportation of minerals.
38 Decree of minister of state Related to the technical guideline for
environmental affairs/ Head of AMDAL arragement for the
environmental impact control agency researches in social, economical and
Number KEP-299/11/ year 1996, about cultural aspects.
Technical Guidelines of Social Aspects
Review in Presentation of
Environmental Impact Analysis
39 Circular minister of labor Number Air quality standard in steel industry
01/1997, about threshold of Chemical room that is planned to be built in
Factor in Work Environment study location.
40 Related to the technical guideline for
Decree of Head of Bapedal Number
AMDAL arrangement for the
124/1997 about public health aspects of
researches in social health aspect.
the study guidein preparation of
environmental impact analysis
41 Circular of minister of Labor Number Working comfort standard in the steel
51/1999 about threshold value of factory/ industry planned to be built.
physical factors in Work environment
No The laws and regulations Reasons for mentioning regulations
42 Decree of minister of energy and Related to the activity plan of

mineral resources Number : ferruginous sand mining.

1452.K/29.MEM/2000, about technical
guidelines for implementation in
inventory of mineral and energy
resources
43 Decree of minister of energy and Related to the activity plan of
mineral resources Number: ferruginous sand mining.

PT. MEGATOP INTI SELARAS I-9

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

1453.K/29.MEM/2000, about technical

guidelines for implementation of the
government's duty in general mining.
44 Decree of Head of Bapedal Number 08 Related to the activity plan and
Year 2000 about community AMDAL process that needs the social
involvement and information disclosure participation/involvement
in AMDAL Process.
45 Decree of Minister of Communication Related to the activity plan that will
Number 54 Year 2002 about peration of build sea/jetty transportation or quay
sea ports in the Mouth of Cibuni River.
46 Decree of minister of state Related to the analysis method
environmental affairs Number 37 Year procedure and surface water (sea and
2003 about surface water quality river water) quality sampling.
analysis methods and surface water
sampling
47 Related to quality standard as the
Keputusan Menteri Negara Lingkungan
comparator with sea water quality
Hidup Nomor 51 Tahun 2004 tentang
that can potentially have any
Baku Mutu Air Laut, sea water quality
decrease.
standard
48 Decree of minister of state Related to the activity plan of
environmental affairs Number 45 Year ferruginous sand mining.
2005 about implementation of
environmental management plans and
environmental monitoring plan
49 Decree of minister of state Related to the activity plan that
environmental affairs Number 11 Year belongs to the activities needed to be
2006, about Types of Business and/or conducted by the AMDAL research.
Activity Plans Needed to be Completed
with environmental impact analysis
50 Decree of minister state Related to the guideline for technical
of
environmental affairs Number Number arrangement of AMDAL.
08 Year 2006 about guidelines for
preparing environmental impact
51 Decree of minister of state Related to the guideline for working

PT. MEGATOP INTI SELARAS I - 10

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

environmental affairs Number 5 Year procedures of the AMDAL

2008 about working procedures of the commission.
appraisal commission of Environmental
Impact Analysis
52 Decree of minister of state Related to the guideline for working
environmental affairs Number 6 Year procedures of the AMDAL
2008 about governance commission commission in Regency/City.
license Assessor of Environmental
Impact Analysis in Regency/City.
53 Regulation of minister of state Related to the guideline for
environmental affairs Number 11 Year competence requirements for the
2008 about Competence Requirements arrangement process of AMDAL.
for AMDAL Documents Arrangement

No The laws and regulations Reasons for mentioning regulations

Local Regulations
54 Related to the implementation of traffic
Local Regulation of Province Region
in the activity plan.
Level 1 of West Java Number 15 Year
1994 about implementation of road
traffic in Province Region Level 1 of
West Java.
55 Local Regulation of Province of West Related to the activity plan that in in
Java Number 2 Year 2003 about spatial the area with various spatial use.
plan in Province of West Java
56 Local Regulation of Province of West Related to the activity plan of
Java Number 17 Year 2001 about ferruginous sand mining.
Mining Management
57 Local Regulation of Province of West Related to the (river) water pollution
Java Number 3 Year 2004 about control as the result of various
pollution control of water quality activities including activity plan.
Decree of Governor
58 Decree of Governor KDH Level I of Related to the laboratorium that will be
West Java Number 660.31/SK.1718/- referenced to do any testing for the
BKMD/92, about designation of water sample of river water quality and

PT. MEGATOP INTI SELARAS I - 11

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

quality testing laboratories ground water quality.

59 Decree of Governor KDH Level I of Related to the activity plan that uses
West Java Number 16 Year 1993 about various kinds of heavy tools and uses
regulation of road. road body surrounding.
60 Decree of Governor KDH Level I of Related to the activity plan that uses
West Java Number 17 Year 1993 about numbers of trucks to carry the materials
traction and traffic generation and minerals.
61 Decree of Governor KDH Level I of Related to the activity plan that needs
West Java Number 18 Year 1993 about traffic control tools in accessing
implementation of traffic control location to the project.
devices
Local Regulations of Cianjur Regency
62 Local Regulations of Cianjur Regency Related to the spatial and land use for
Number 1/1997 about RTRW of Cianjur the activity plan.
Regency
63 Local Regulations of Cianjur Regency Related to the activity plan that causes
Number 13 Year 2000 about, impacts towards social and culture
empowerment and the preservation and aspects unless it employs local workers.
development of customs, community
customs and traditional institutions.
64 Local Regulations of Cianjur Regency Related to the relevant instance with

Number 22 Year 2000 about, local the lisence to the activity plan and as

government organizations of Cianjur the members of AMDAL commission.

Regency
65 Local Regulations of Cianjur Regency Related to the activity plan of
Number 11 Year 2004 about General ferruginous sand mining.
Mining
66 Local Regulations of Cianjur Regency Related to the AMDAL study for the
Number 04 Year 2006 about activity plan of ferruginous sand
Environmental Research. mining.

1.4. Purpose and Benefit of the Study

1.4.1. Purpose of ANDAL Study

The purposes of implementing ANDAL study in ferruginous sand mining

activity are:

PT. MEGATOP INTI SELARAS I - 12

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

a. To identify business and/or activity plan that will be conducted,

particularly those that cause big and important impact upon environment
in preparation stage, mining operation stage and after mining operation
stage.

b. To identify environmental components affected by the big and important

impact.

c. To predict and evaluate the business and/or activity plan that will arise big
and important impact towards environmental components.

d. To formulate Environmental Management Plan (RKL) and Environmental

Control Plan (RPL).

1.4.2. Benefit of ANDAL Study

1. Benefit for Project Initiator
a. To help decision process about environmental feasibility of business
and/or activity plan.
b. To give input for the arrangement of tecnical detailed design of
business and/or activity plan.
c. To give input for the arrangement of environmental management and
control of business and/or business and/or activity plan.
d. To meet the rules in the laws and regulations in the field of
environment.
2. Benefit for Government
a. as input material in areal planning based on the previous
environmental condition and the available development level
b. to prevent or reduce environmental damage in surrounding areas of
project track location of the activity that causes advance impact in
other environmental components.
c. as material in deciding process about environmental feasibility in the
location of activity plan.
3. Benefit for Society
a. As medium to give information for surrounding people so that it can
prevent from negative impact and make use of positive impact.

PT. MEGATOP INTI SELARAS I - 13

TRADE ON FERRUGINOUS SAND MINING
INTRODUCTION

b. As input material for society in planning business based on the

environmental condition and future condition related to the
project activity.

PT. MEGATOP INTI SELARAS I - 14