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The increasingly frustrated Ministry of Forestry has issued a second warning to mining giant PT Freeport Indonesia for not obtaining a permit to mine in protected forest areas.

Forestry Minister Zulkifli Hasan told lawmakers he had sent Freeport, a subsidiary of giant US miner Freeport-McMoRan, an initial warning on Aug. 7 last year but had heard no reply.

Speaking on Monday at a hearing with the House of Representatives Commission IV overseeing the forestry and agriculture sectors, he said a 2004 government regulation in lieu of law (perppu) required a permit from the ministry to be issued for mining in protected areas. The forestry law prevents forest areas from being mined, but the 2004 perppu provided exceptions to 13 miners, including Freeport, provided they acquire “borrow-use permits” from the ministry.

Freeport has no such permit, Zulkifli said.

“Under the forestry [law] it is illegal, that’s why we sent the second warning,” Zulkifli said, adding that his ministry did not have authority to revoke the license for non-compliance.

Budiman Moerdiat, the communications manager of Freeport, which operates Grasberg, the world’s biggest gold mine and third-biggest copper mine, aired surprise at the minister’s move but said the company had a strong legal basis for not seeking a permit from the Forestry Ministry.

“We followed the rules that were set in our mining contract of work. We were granted lex specialis rights,” Budiman said, referring to a stipulation that the terms and conditions of the contracts would not be affected by any general Indonesian laws in the future.

Freeport acquired the Grasberg concession in 1988 and extended it for another 30 years in 1991. It was at that point that it was granted the lex specialis right. It holds the option to extend for a maximum of another 20 years.

“Law enforcers are supposed to be taking action to scrutinize the big [players], not only small ones,” said Zulkifli, who became forestry minister in October.

There are more than 516 permits for mining in more than 468,001 hectares of forest area.

Besides Freeport, other miners with exceptions include PT Karimun Granit in Riau Islands; PT International Nickel Indonesia (Inco) in South, Southeast and North Sulawesi; PT Indominco Mandiri in East Kalimantan; and PT Aneka Tambang in North Maluku.

Only Indominco and Aneka Tambang have acquired permits, and Inco is in the process.