Altura: Production at Delta coal mine suspended amid legal dispute
Tuesday, January 31 2017 - 03:10 AM WIB
Petromindo|Boim
ASX-listed Altura Mining Ltd announced Tuesday that production at Delta coal mine in East Kalimantan has been suspended pending resolution of legal actions in relation to the contract mining operations.
Altura said in a statement that a legal case submitted on behalf of the mining contractors seeks payment for mining services rendered to the coal mine, however Delta Coal has lodged a counter claim for breach of contract pertaining to a sustained period of below contract performance resulting in higher than contracted waste removal costs and lower than contracted coal delivery tons.
?Delta Coal has continued to negotiate with the contractors in order to deliver an amicable and equitable solution but as yet no agreement has been reached,? said Altura, which holds one third interest in the mine.
Altura said in September of last year it plans to divest interests in Delta coal mine and Tabalong coal mine, in South Kalimantan, amid the lingering weak coal market condition, and as it develops its world class Pilgangoora Lithium Project in Western Australia.
Altura said it is pursuing a number of options for sale of the coal assets and information has been made available to a number of parties under confidentiality deed arrangements.
The Delta mine produces a medium energy thermal coal and during the 2015/16 financial year, the mine produced 0.404 million tons (mt) and sold 0.453mt of coal. Production during the year was lower than during the 2014/15 financial year due a depressed coal market, and continuing lower production from contractors during the year.
The Tabalong coal project is a premium grade thermal coal deposit located in South Kalimantan. The project consists of five mining licenses (IUPs), with all five IUPs granted for Operation Production. Altura holds 70 percent of three IUPs and 56 percent of the remaining two.
Editing by Reiner Simanjuntak