Arutmin disappointed over suspension of operations at Senakin, Satui mines
Friday, June 7 2013 - 02:13 AM WIB
PT Arutmin Indonesia (AI), which the Sanukin and Satui mines in South Kalimantan, expressed disappointment over the latest move by its contractor PT Thiess Contractors Indonesia to suspend operations at the two mines.
PTAI is 70 percent owned by IDX-listed coal miner PT Bumi Resources Tbk. Thiess has suspended operations of the Senakin and Satui mines as it is pursuing A I for payment of what it describes as "underclaims".
Bumi said in a press statement Thursday that Thiess has in fact suspended operations at the Senakin and Satui mines of PTAI. PTAI affirms that it has paid and continues to pay to Thiess all sums that Thiess is entitled to under the terms of the contract.
?Instead of complying with the dispute resolution mechanism under the contract established with 12 years of precedent and protocol on how such matters are handled, Thiess has unilaterally, and in our opinion, wrongfully suspended performances of its obligations under the contract,? Bumi said.
?PTAI is very disappointed that Thiess has decided to pursue this course of action considering that the parties have worked together for 12 years, and until now, the parties have been able to satisfactorily resolve all previous disputes without resorting to such drastic measures. Apart from Thiess, Arutmin and KPC are not in dispute with any of its other mining contractors.?
Thiess' actions have caused and continue to cause harm to the local economy, Bumi further said..
Bumi also noted that PTAI has commenced legal proceedings in the Queensland Supreme Court on 2nd April 2013 seeking declaratory relief to clarify the legality of its mining services contract with PT Thiess Contractors Indonesia due to a change in the Mining Laws in Indonesia which came into effect on 1 October 2012.
PTAI is presently producing at ca 2 million ton per month of coal even after production in Senakin and Satui has been suspended by Thiess since 26 April 2013 . ?Bumi is doing everything possible to make up through other sites including KPC as optimally as possible. Bumi confirms that there is no change to its original sales guidance of 74 million tons in 2013 (compared with 68 million tons last year).?
Editing by Reiner Simanjuntak