Arutmin stops operations after navy seizes fuel supply

South Kalimantan coal miner PT.Arutmin Indonesia is forced to temporarily suspend mining operations in Senakin mine since Monday after the navy seized the three barges carrying fuel supply for the company last Thursday, a company official said.

?Senakin mine?s operations was completely halted since Monday; if the navy do not release the barges, we will have to stop operations at Satui and Asam-Asam mines tomorrow (Wednesday), Arutmin senior official Endang Ruchiyat told Petromindo.Com Tuesday

Endang said the navy seized the barges on the ground that they did not have valid documentation (delivery order) from state oil and gas company Pertamina. ? The vessels are carrying certificate of quantity loaded (CQL), original delivery order had been submitted on Friday, but the vessels are not yet released,? he said.

Under Indonesian fuel subsidy scheme, industries are required to pay fuel at international prices while fuel used for transportation are heavily subsidized prices, which created huge price discrepancy. The navy is authorized to prevent subsidized duel snuggled out of the country.

Another company official who declined to be named said that thus far, the company?s shipping commitments are thus far unaffected and the vessel would likely to be released soon.

Arutmin, a subsidiary of JSX-listed coalmining house PT.Bumi Resources Tbk, which is controlled by the family economic czar Aburizal Bakrie. (godang)