Arutmin and local partner divided over coal prices

PT Arutmin, a major coal producer in South Kalimantan, remains divided with its local partner PT Multi Usaha Pratama (MUP), over the price of coal that has to be sold by the latter to the coal mining giant, Antara news agency reported.

The news agency reported that PT MUP, which handles the marketing of coal produced by small-scale mining companies in the province's Kota Baru regency demanded Arutmin to pay a higher price.

"As the negotiations have failed to settle the difference, we have ordered all the mining companies to stop their activities," Fahmi, the director of PT MUP was quoted by the news agency as saying recently.

He said that PT MUP wanted PT Arutmin to pay its coal at Rp 83,000 per ton (including transportation costs to Arutmin's stockpiles), but Arutmin could only buy the coal at Rp 63,000 per ton.

"We have reported the case to the Kota Baru regent. Hopefully a meeting with Arutmin could be held as soon as possible so that there will be a solution to deal with the problem," he said, adding that if Arutmin continued to refuse to increase the price, MUP would have no choice but to sell the coal to other companies.

"If the difference could not be resolved, we will only sell 20 percent of the coal to Arutmin. The other 80 percent will be sold to other parties," he added. (*)