21 coal mining firms cancel investment plans

At least 21 coal mining companies have cancelled their investment plans due to uncertainty in the tax and mining regulations, and other eight investors have suspended their coal mining operations due to similar reasons, Bisnis Indonesia reported on Wednesday.

The secretary general of the association of coal mining companies (APBI), Jeffrey Mulyono, sad in Jakarta on Tuesday the investors cancelled and suspended their mining projects due to uncertainty in the existing tax, and environmental regulations.

The regulations, which hamper coal mining operations, include the regulation No. 144/2000 which changes the status of coal into taxable object, regulation No. 82.2001 on the water pollution control, and regulation No. 41/2001 on the restriction of open-mining operation on protected forests.

Jeffrey said that the implementation of the regulations did not only bring higher financial burden to the company but also made the mining operations no longer feasible.

The companies which cancel their investment plans include PT Sarita Prima Coal, PT Borneo Bhaktibara Utama, PT Meulaboho Energitama, PT Buana Lana Utama, PT Selatan Selabara, PT Bara Utama Unggul, PT Dinamika Jaya Abadi, PT Ekakartika Mitrajaya, PT Bara Kusuma Indah,PT Catur Haksa Mandiri, PT Bara Perdana Lestari, PT Eternal Bara Dinamika, PT Nusambadha Utama, PT Restubara Karya Pratama, PT Terratex Jayatama, PT Wahana Barasakti, PT Adiabara Bansatra, PT Bukit Kalimantan Indah, PT Binaduta Batubara Sakti, PT Mecta Energi Ent and PT Pinangsia Sarana Bara

The mining firms which suspend their operation are PT Nusa Minera Utama, PT Benakat Energi, PT Hulubalang Inti Bumi, PT Bara Pramulya Abadi, PT Persada Permata Mulia, PT Karunia Poladaya Buli, PT Trimata Coal Perkasa and PT Wadungmas Tambang Mulia. (*)