Arutmin ties up with local government to curb illegal mining

South Kalimantan coal producer PT Arutmin Indonesia, a unit of JSX-listed coalmining house PT Bumi Resources, has agreed to cooperate with the local government of the Tanah Bumbu regency to carry out mining operations in its concession area in the regency, Bisnis Indonesia reported on Friday.

The Tanah Bumbu administration said that it had formed a company named PT Perusda Bersujud as the operator of its cooperation with Arutmin. Under the cooperation agreement, the local government's company would coordinate activities of illegal mining operations in Arutmin's concession areas in the regency.

"The cooperation with Arutmin is expected to minimize the operation of illegal miners in Arutmin's areas," the local government's spokesman Abdul Karim said, adding that all of the coal production from the illegal miners would be sold to Arutmin through PT Perusda Bersujud.

The increase in the coal prices has caused a widespread illegal mining operation in South Kalimantan, the country's largest coal producer. Arutmin's mining operations are also seriously affected by the illegal miners' activities. (*)