Arutmin fears dredging of local river for coal transport would thrive illegal mining

Coal mining giant PT Arutmin Indonesia, which is 80 percent owned by Australian mining giant BHP, is worried that the plan by the South Kalimantan Tanah Laut administration to dredge the local Sungai Asam-Asam river to allow coal transport would cause illegal mining activity to mushroom.

Arutmin chief representative in Pelaihari area Yohanes Radirusmansyah was quoted by the Banjarmasin Post as saying that the dredging of the river would also provide easy transportation for the illegal coal miners.

He said that even without the better transportation, illegal mining activity in South Kalimantan had already become a problem difficult to overcome.

Yohanes appealed to the local administration to reconsider the plan.

The Tanah Laut administration has agreed to let two private investors called PT Barugeni Tala and PT Pengerukan Indonesia to dredge the local river. The project will cost around Rp 10 billion. Vessels carrying logs or coal passing through the river would have to pay a fee of between 0.5-0.7 US cents.(*)