Arutmin suffers US$1 million in losses due to road blockade

Coal mining company PT Arutmin Indonesia in South Kalimantan suffered some US$1 million in losses due to the recent road blockade made by hundreds of villagers protesting move by the local authority to curb illegal mining.

Irwan Sjarkawi, president of PT Bakrie & Brothers, a local conglomerate which owns 20 percent of Arutmin, said late last week that the road blockade had caused the company to be unable to produce 20,000 tons of coal.

Irwan said that this loss of opportunity and other expenses had caused the company to suffer some $1 million in losses.

Arutmin is 80 percent controlled by Australia BHP mining group.

Hundreds of people blockaded Arutmin?s main access road in Satui, Kotabaru Regency, to protest the local authority?s move to curb illegal mining activity. The protesters blockaded the road because the company had supported the government action.

However, the company has resumed to normal operation since last Wednesday.(*)