|JATAM - Mining Advocacy Network|
|Indonesia KPC says coal operations return to normal|
Source: Reuters - September 3, 2008
Indonesian coal miner PT Kaltim Prima Coal (KPC) said operations at its mining area had returned to normal since late Tuesday after local officials opened up the mining pits, company officials said on Wednesday.
Local forest rangers shut a road leading to its East Kalimantan mine last month, disrupting operations of KPC, a unit of PT Bumi Resources Tbk BUMI.JK, Indonesia's largest coal miner. Bumi is controlled by the family of chief social welfare minister Aburizal Bakrie.
In late August, Indonesian police reopened the road used by miners such as PT Kaltim Prima Coal (KPC) to transport coal to a nearby port, bringing distribution back to normal, but two of KPC's mining pits remained shut.
"Operations have returned to normal since yesterday in areas that were previously disrupted," Harry Miarsono, general manager for external affairs at KPC, told Reuters.
Separately, Dileep Srivastava, senior vice-president for investor relations at Bumi, also told Reuters KPC had resumed all operations. He added Bumi would come out with its full-year 2008 guidance in end September 2008.
East Kutai regency, East Kalimantan said in July it had ordered KPC another coal miner PT Perkasa Inakakerta, a subsidiary of PT Bayan Resources Tbk BYAN.JK, to stop operating in some areas because they did not have permits from the forestry ministry for 40,000 hectares (98,840 acres) of land.
KPC produced 38.9 million tonnes of coal in 2007, or about a fifth of Indonesia's total production.
Bayan Resources sees coal production of 13-14 million tonnes in 2009, up from 9 million tonnes this year. Indonesia expects to produce 205 million tonnes of coal in 2008, with domestic demand seen at 52 million tonnes and the remainder to be exported, according to energy ministry data. (Reporting by Fitri Wulandari and Harry Suhartono, editing by Sugita Katyal)
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