Arutmin terminates Senakin, Satui mines contract with Thiess

By Godang Sitompul

Coal miner PT Arutmin Indonesia, which owns Senakin and Satui mines in South Kalimantan, has terminated its mining service contract with PT Thiess Contractor Indonesia after the latter suspended mining operations at the two mines during the past six months over payment dispute.

This was said by Director of Coal at the Ministry of Energy and Mineral Resources, Edi Prasodjo to Petromindo.com Thursday.

Arutmin and Thiess could not be immediately contacted.

Thiess, a subsidiary of Leighton Holdings, suspended the mining operations at Sanukin and Satui mines on April 26, as the company pursued for the payment of net project receivables, or underclaims, to which Leighton has a contractual entitlement. The company said in May it was confident to settle the payment dispute and to resume operations at the two mines.

Arutmin, which is 70 percent owned by PT Bumi Resources and 30 percent by India?s Tata Steel, in a June statement expressed disappointment over the suspension of operations at the two mines. Arutmin claimed at the time it has paid and continues to pay to Thiess all sums that Thiess was entitled to under the terms of the contract.

Editing by Riener Simanjuntak