Adaro resumes partial mining operations

Indonesian top coal producer PT Adaro Indonesia said on Monday it had resumed partial mining operations on its South Kalimantan mine after villagers that blocked the mine?s hauling road since Tuesday ended the blockade.

?After assessing the situation, we have decided to resume partial mining operations in order to accumulate coal stockpile at our loading port,? said administration manager Priyadi. He said Adaro needed stockpile of 300,000 tons to maintain loading activities.

Priyadi did not say the current production rate, but prior to the blockade, the company produced 70,000 tons of coal per day.

He added that the force majeure status had not been lifted as the company?s loading activity was still halted due to unavailability of coal stockpile.

Priyadi said Tabalong regency administration had taken over negotiation with protesting villagers.

Hundreds of Ku?u and Tamiyang villagers blocked Adaro?s hauling road last Tuesday, demanding the company to pay compensation for damages they accused caused by Adaro?s operations. The blockade forced Adaro to stop operations and declared force majeure on Friday.

The villagers ended their blockade late Friday, but Adaro chose not to immediately resume mining operations for fear that the villagers would resume the blockade as negotiation with the villagers had not been concluded.

Adaro, which operates a giant mine in South Kalimantan produced 22.5 million tons of coal last year, with most of production went to export market. (Godang)