CORAL REEF 99 CONFERENCE BALI DECEMBER 1 -3 1999

[Reef-99]

Dear Colleagues

I would like to share with you some alarming news regarding the =93Lembeh
strait Preservation Society=94.

=93 Meares Soputan=94 is a major gold extraction company that plans extract=
 a
huge amount of gold around the tangkoko nature Reserve, including parts of
the Reserve itself!  The major shareholder is =93Aurora Mines=94, one of th=
e
biggest Australian mining companies. The Australian Company has been
exploring the region for the last three years. Gold extraction is expected
to begin this year. The problem arises with the waste disposal system that
Aurora intends to implement in order to dispose of the cyanide and the
other highly toxic chemicals used in the gold separation process. It is
really unfortunate that to this date big companies still view the ocean as
a bottomless waste basket.  It is in the =93 Ocean waste basket=94 that Aur=
ora
Mines plans to discard the toxic chemicals using the submarine tailings
system.

Please bear with me while I explain how this process works. The submarine
tailings system consists of a submarine pipe that releases the toxic waste
(tailings) in the ocean below the thermocline level. In theory the sharp
decrease in temperature would =93trap=94 anything beneath the thermocline
level for this project, a 150 meters dept has been set. That is the plan
where the company plans to run the submarine pipe. The mining company says
that it will release the toxic waste below the thermocline level which is
assumed to be located around 80-100 meters below sea level. They say that
THERE IS NO LIFE BELOW THIS POINT!! Their assumption are built on data
collected in non-tropical regions. The issue about the location of the
thermocline regions is very different in tropical countries. They are
actually having quite some trouble convincing local fishermen, who catch
fish up to 200 meters deep, that there is NO LIFE beyond 80-100 meters and
that their catch will not be affected. In fact, there is video footage
from the coelacanth fish research project which shows a variety of marine
life below 200 meters: deepwater snapper, sponges, gorgonian, chambered
Nautilus, coelacanths, deep water sharks, rays etc. the assumptions that
the thermocline will =93trap=94 the released toxic wastes is also superfici=
al
to say the least. There is really No sharp thermocline there and there and
the temperature starts to go down below 100 meters. However, this is not a
sharp thermocline which would =93trap=94 anything beneath it. In addition, =
the
region is known to have a Lot of cold water upwelling. Colder water coming
from the deep is in fact one of the main reasons why the EL Nino has had
little effect in the area. You can feel the cold water up welling in your
every day dives!! In fact, scientists say that nothing necessarily stays
beneath the thermocline- it can easily be stirred up even if the pipe is
placed at a depth of 250 meters.

The Australian company has some trouble coming up with convincing
arguments regarding the depth of 80-80 meters present waste release
location.  They could run the pipe offshore until they reach the 150 meter
depth target, but that would mean shooting the toxic waste into the mouth
of the Lembeh Strait. Those of you who have dove in the strait know about
the strong currents. In fact, you do not have to be a rocket scientist to
figure out that strong water flow and the cold water upwelling will turn
the lembeh strait into a cyanide solution.

The Australian Company has sent emissaries to the various villages to
convince the subsistence fishermen and the local communities that their
livelihood will not be affected. Well, if there is =93no problem=94 why do
they go into so much trouble to convince people that everything will be
OK. Of course, the time that you could buy people with a couple of shiny
beads is long gone, These people are poor and uneducated but they are not
stupid. They actually have a very convincing example regarding the
system=92s safety: Newmont, Yes, the people near Newmont, where a similar
submarine system operates, believed that their lives will not change.
Today, out of 17 fish species that were caught for consumption, only two
fish species remain in addition, they cannot sell their catch because
consumers fear the fish is intoxicated, and with good reason.

The submarine piping waste disposal system has been banned in the USA,
Canada and Australia but is still allowed in Indonesia which is currently
the only country the system. As you can understand, the financial
interests are huge and this is not going to be an easy one two win.
Fortunately,=94 Minewatch=94 and other International environmental agencies
have taken this matter very seriously.

I understand that you are all very busy. Companies like =93Aurora Mines=94 =
are
very aware of that and it suits their plans perfectly. They know that
after a while you will =93forget=94 about it since you will have to attend
more pressing matters.  However, please take the time and let them know
that you care.



Integrated Selayar Bonded Zone For Industry, Business and TourismCorporatio=
n
SELAYER INVESTMENT AND DEVELOPMENT CORPORATION (SIDCO)
                                               Preface
As part of the vision and overall development plan for Eastern Indonesia, t=
he
President R.I.
Prof. DR. BJ. Habbie has designated Selayer  South Sulawesi the THRIRD LARG=
EST
ATTOL islands in the world as a centre for Industry, Business, and Tourism,=
 as
the locomotive for the development of Eastern Indonesia. Working together w=
ith
the people of Indonesia and other nations to strengthen the economy and
production of exports as a symbol of national strength.
This project was proposed to the government and approved by the president o=
n
August 18 1998 to change Selayar to be an Integrated - Industry - Business =
-
Tourism - Zone.
Named as Selayar Investment and Development Corporation (SIDCO). This zone
consists of 7 Kecamatan, (3 Kecamatan on the island itself and 4 other
Kecamatan surrounding the island (south, southeast and northwest)) as
described below :
- Kec. Bontomatene (North of Selayar) 138,53 Km2
- Kec. Bantoharu (Central Selayar) 133,74 Km2
- Kec. Bontosikuyu (South of Selayar) 183,26 Km2
- Kec. Bontomaeru (Northwest of Selayar) 186,92 Km2
- Kec. Pasitallu (Southeast islands) 51,05 Km2
- Kec. Pasimasunggu (Southeast islands) 98,39 Km2
- Kec. Pasimaranu (South islands) 111,46 Km2
With the total of 903,35 Km2 or 90.335 Ha this area consist of 60 island,bi=
g
and small.
This project will be divided by three major areas that will maximise the
potential of the whole eastern Indonesia :
1. Zone A- Industry
It is set on the north part of the island (Kec. Bontomatene). HEMOCO Selaya=
r
Refinery will be built in this zone to produce drilling equipment, machiner=
y,
fishing boats, workshops and other thing to help the fishery and agricultur=
e
industry. A township will also be build here for employees that work in thi=
s
area.
The prime Industry - HEMOCO Selayer International Refinery - will have
refining capacity for 150,000 barrel per day, with potential to develop a
capacity of 450,000 BPD. This industry will supply fuel and raw material fo=
r
Petrochemical, and Chemical industries to be developed in the park.
Production will also be available for distribution to develop industry
nationally and for export.
2. Zone B-Government, Trading and Housing In this zone lies the capitol cit=
y
of Selayar - Benteng that will be expanded for Banking, Business, Governmen=
t,
Housing, Education, Antar Bangsa Airport in Padang and Deep Water Antar Ban=
gsa
Harbour in south side of Benteng. Benteng as the centre of information is
needed to support the first stage of the Refinery - Business - Tourism
Industry. All of this will have a very strong impact to both local and abro=
ad.

3.  Zone C-Tourism
This industry will be placed on the south side of the island, Pasi and Gusu=
ng
Island areas. Including international standard 3,4,5 Star Hotels and Resort=
s,
also golf course, marina, water sports, Olympic standard sports centre,
information centre, tourism educational centre, including traditional
community, fishing, sailing, diving, Taka Bonerate National Marine Park
(500.000 Ha) (3rd biggest in the world, biggest species diversity in the
world), fantasy world, marine world, floating restaurant, Indonesia Miniatu=
re
Park, Safari Park, United Nations Village, etc. will be build here.
It is very important to expand this area because it has 3 international sca=
le
marine parks : Taka Bonerate - Selayarand Sabalana - Pangkep, South Sulawes=
i
and Hoga - Buton, South East Sulawesi.
To support all of this, there will be a few thing that are need to be
provided, such as :
* Sea - Catamaran fleet, Hydrofoil, Motor powered Pinisi.
* Land - Double way system that provides international standard transportat=
ion
to and from     Selayar.
* Air - Will provide fast transportation to connect East and West, Asia
Pacific and the Continent. To do so, we propose a joint operation with Garu=
da
Indonesia to establish an East Indonesia Air Transport where Ujung Pandang
will be the international gateway to these parts of Indonesia. Also to make
Antar Bangsa Airport in Padang, Benteng, Selayar to be =93Pair City=94 from=
 Ujung
Pandang, and make it as the =93last destination=94 for the Industry - Busin=
ess -
Tourism area.
HEMCO Selayar International Oil Refinery is a part of MIGAS Industry Bonded
Zone in SIDCO. Feasibility study of SIDCO will be made and will be the base
structure for planning and developing of the Integrated Selayar Bonded Zone
for Industry, Business and Tourism Corporation.
SIDCO will be the company that acts as a big magnet with modern internation=
al
standard management. This way, people that live in this area can have a bet=
ter
lifestyle, through hard work and good planning.
All of this can be achieved by self motivating and self propelling accordin=
g
to the open basic business principle in their soul and their National
-International scale entrepreneurship. A business and trading  oriented
company in the world market with its own strength will have no
problem competing in any condition in the 21st century Millennium 3, on the
Hallmark Indonesia, in the event to develop and build a stronger economy an=
d
finance in Indonesia .  Air Transport development proposal This is a joint
venture project between KTI (Kawasan Timur Indonesia) with  Garuda Indonesi=
a
to develop Ujung Pandang to be the international gateway to
the eastern Indonesia through the international airport in Padang.
Fleet Planning 1999-2001
* 6 Boeing 737-200        Seats =3D 99 seats   Cargo bulk space =3D 3,5 ton=
s
* 3 Boeing 737-300        Seats =3D 112 seats      Cargo bulk space =3D 4 t=
ons
Crew planning     Cockpit crew =3D 72 personnel   Cabin crew =3D 144 person=
nel
Fleet Planning starting 2001-2003
* 3 Boeing 747-400 Combi     Seats =3D 300 seats Cargo compartment =3D 70 t=
ons
* 3 Boeing 747-400             Seats =3D 450 seats      Cargo compartment =
=3D 35
tons
* 3 Airbus (freighter) A300-600 Seats =3D 230 seats  Cargo compartment =3D =
12
tons
* 8 Boeing 737-600                     Seats =3D 130 seats


CLOSE
It is our analysis - based on personal opinion - and interesting to note;- =
Of
the proposal=92s verbiage two paragraphs are devoted to the refinery
development, . This is the first part and by far the major investment of
several billion dollars compared to the "Tourism=94 proposal. Also whilst
refining capacity is shown, no mention of storage capacity is made.
The Tourism section consists of plans for 3,4,5 star hotels resorts, golf
course and other =93plastic=94 attractions, (Here I question how much of Zo=
nes B &
C development, and over what time period, is guaranteed under the overall
proposal).
The proposal reflects a complete failure to understand what real eco-touris=
m
and protected national marine parks are all about. Whilst openly acknowledg=
ing
the area as a most diverse one for marine species, and the presence of othe=
r
protected areas in the vicinity, absolutely no mention is made concerning t=
he
impact or possible hazards introduced by the construction of deep water
berthing for very large crude oil carriers, and there presence, and I suspe=
ct
that of naphtha and ethylene carriers which will carry refined products to
Korea. (as part of the inducement for Korean Investment). Also the physical
dangers of damage through navigational
errors, oil spills, tank cleaning, and other potential hazards are not
mentioned. (ESSO Valdez is still in appeal courts unresolved and only two o=
f
thousands of species damaged have so far recovered)
Selayer as a major refinery is based on its remote and strategically centra=
l
position in the seas of Indonesia, and its relative position to the future
large gas field developments in the Irian Jaya, Berau area by ARCO and Brit=
ish
Gas, together with other partners . This convenience excuses the
degradation of the island, and the whole area to the east, key areas of mar=
ine
diversity, as part of national development.
Storage of large amounts of crude oil from Kuwait, for process and re expor=
t
of refined derivatives to Korea indicates - Kuwait desires a remote and
relative secure location to store and sell it=92s oil from (free from the
possibility of Sadam=92s interference), - The Korean entity benefit from th=
e
supply of environmentally =93volatile=94 substances, without subjecting its=
 own
environment to risk, - The Indonesian investment group, which includes peop=
le
closely related in business to both the current and past presidents have us=
ed
their own relationship to this area as their =93homeland=94 to seized on th=
is
opportunity to provide these facilities and benefit from the commercial spi=
n
offs, while presenting a =93Forward to the 21=92st century development of t=
he poor
locals=94 sub-defuge, to the people of Indonesia. The writer fully agrees t=
hat
Selayer should be declared as a centre for Eco Tourism for Eastern Indonesi=
a,
Facilities should include a Centre for Research and Education into Appropri=
ate
and Sustainable Technology to support this. If we are to sustain a vital pa=
rt
of Indonesias marine resources, efforts should be begun immediately to find
potential =93environmental investors=94 to develop this project, and submit=
 it as
a rival proposal to SIDCO - HEMOCO for the island development immediately.

These and more projects are products of the former and present Government a=
re
based on a not =93clean=94 Government,
We the Indonesian people are FIGHTING for a Clean Government and a clean
SEA,Your support is needed by participating CORAL REEF 99 were Representati=
ves
of the mining compannies will discuss the above problems with NGO=92s and l=
ocal
fisherman.
With YOUR SUPPORT and as many as possible International Participants, we wi=
ll
be able to put
Pressure to the Government.
We count on your support to KEEP THE CORAL REEFS A LIFE. The Orgazing
Coommitte of
Coral Reef 99 is NON GOVERNMENT !!!!!








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