10 mining firms delay coal exploration
Monday, May 1 2000 - 08:30 AM WIB
Some 10 coal mining companies had delayed their exploration and general survey activities following the fall in the price of the commodity, according to a senior official at the Ministry of Mines and Energy.
Director for coal at the director general of mining office Suyartono was quoted by the Bisnis Indonesia daily as saying that the 10 mining companies were those which had signed the second generation and third generation mining contracts.
Suyartono said that the 10 contractors were PT Nusa Mineral Utama, PT Ramdany Coal Mining, PT Indexim Coalindo, PT Bara Sentosa Lestari, PT Dutaputra Tanaratama, PT Trubaindo Coal Mining, PT Hulubalang Inti Bumi, PT Suprabari Mapaindo, PT Trimata Benua, and PT Trimata Coal Perkasa.
Suyartono said that the drop in the international price of coal commodity had prompted the shareholders of the mining companies to temporarily delay their operation until the price improved again.
He said that the contract of work allowed a maximum delay of 2 years, but the contractors were obliged to pay the various fees during the delay period.
Suyartono said that another 16 coal mining companies had totally abandon their projects particularly due to low coal reserves, poor coal quality, low commodity and the lack of financing.
He said that the 16 companies were also part of the second and third generation contract of works.(*)