Adaro declares force majeure following strike

Coal mining firm PT Adaro Indonesia has declared force majeure to its buyers following the strike by its main contractor?s workers that had cut Adaro?s daily production down to 80 percent.

?We declared force majeure on October 8 following the same declaration made by PT Pama Persada Nusantara to Adaro,? Adaro?s administration manager Prijadi told Petromindo.com on Wednesday.

Pama Persada is a subsidiary of publicly listed heavy equipment maker PT United Tractors.

Normally, Adaro produces 60,000 tons of coal per day.

Prijadi said the strike, starting October 6, completely halted Pama Persada?s activities. Presently, Adaro?s coal supply came from other contractors whose workers did not join in the strike.

He said negotiations between Pama Persada and the workers who were members of Indonesian Prosperous Labor Union (SBSI) were still continuing. ?We expect them to reach an agreement soon,? Prijadi said.

Adaro, operating coalmines in South Kalimantan, is the country?s biggest coal producer with its planned coal production standing at 18 million tons this year. (alex/godang)