Arutmin suffers loss of US$200 million due to illegal mining activities

South Kalimantan-based coal mining company PT Arutmin Indonesia has reported a massive a massive financial loss due to the activities of illegal miners in its concession areas, Bisnis Indonesia reported on Tuesday.

General Manager of the company Endang Ruchijat said in a hearing with the Commission VIII of the House of Representatives (DPR) in Jakarta on Monday that the loss suffered by the company during the period between 1992 to 2002 had reached a total of US$200 million.

He said PT Arutmin which began commercial production in 1989, suffered a loss of about two million tons of coal reserves a year due to the illegal coal mine operations. Endang feared that the company would not be able to complete its 30-year contract due to the depletion of the coal reserves.

PT Arutmin which obtained a contract of works to carry out mine exploration on 70,154 hectares of land in South Kalimantan in January 15, 1982, could do nothing but sought help from the local government to curb the massive illegal mining activities.(*)