Another subcontractor to sue Nusantara Thermal Coal

Jambi-based coal miner PT Nusantara Thermal Coal (NTC) is facing another legal suit from two of its subcontractors PT Basmal and PT Jambi Resources for an alleged breach of contract, Sindo daily reported on Monday.

Paus Paulus, a lawyer of Basmal and Jambi Resources, said last week that his clients would file a legal suit against NTC through the Singapore International Arbitration Center for the cancellation of the contracts awarded to the two companies to handle mining operations in the company?s mining area.

?We will ask for a compensation of about US$50 million through the arbitration agency for the losses resulting from the cancellation of the contracts,? he said, adding that PT Basmal alone had spent at least $20 million for conducting mining activities at NTC?s mining area.

Earlier, NTC executives and its shareholder Ratna Handini were under investigation after PT Titan Mining Energy, also one of its subcontractors, reported the alleged manipulation. (*)