Adaro says its S. Sumatra coal mine has no dispute with PTBA

IDX-listed PT Adaro Energy Tbk, Indonesia?s second largest coal producer, said on late Thursday that mining area belonging to its recently acquired coal mine in South Sumatra does not overlap with mining area owned by state miner PT Tambang Batubara Bukit Asam and the mine has received proper permit from the local government.

PT Bukit Asam (Persero) Tbk at end August filed a summon, calling on investors and other parties not to apply for mining licenses or participate in acquiring stakes in a number of coal companies in South Sumatra following a dispute on mining licenses.

PTBA had filed civil lawsuits in 2008 against several South Sumatran coal miners including PT Mustika Indah Permai (MIP) which was recently acquired by Adaro, for carrying out mining on Bukit Asam's concessions in Lahat Regency and Muara Enim.

Supreme Court had ruled in favor of Bukit Asam in 2009 but the defendants subsequently applied for a review on the case.

The South Sumatra governor had revoked PTBA?s mining license over the disputed mining area in October 2004, said Adaro in its statement to the Indonesia Stock Exchange.

?Bukit Asam has never questioned the governor?s decision to revoke the mining license,? said Adaro.

?Thus, when MIP obtained its mining license from Lahat regent in South Sumatra, the company?s mining area does not overlap with any other companies? mining area,? the company said in the statement.

PT Adaro Energy Tbk announced in August that its unit PT Alam Tri Abadi signed an agreement to acquire 75 percent stake of PT Mustika Indah Permai from Elite Rich Investment Limited for US$222.5 million.

Mustika Indah develops a greenfield coal project in South Sumatra and holds a mining permit, known in Indonesian as an IUP, which was granted in April 2010 for a period of twenty years.

But the Directorate General of Minerals and Coal at the Ministry of Energy and Mineral Resources announced in July that it has canceled ?clean and clear? status for 26 coal miners at Lahat regency, including PT Mustika Indah Permai.

The Directorate has canceled clean and clear status for 26 coal miners that hold mining permits or Ijin Usaha Pertambangan (IUP) because of ongoing legal issues with state miner PT Tambang Batubara Bukit Asam (PTBA), the Directorate said on its website.

PTBA had also sued Lahat Regent, Lahat Regency's Energy and Mineral Resources Office, and the South Sumatra Province's Energy and Mineral Resources Office for issuing mining permits for those companies to operate in the company?s mining areas. (fitri)