Bayan declares force majeure for its S. Kalimantan coal mine

IDX-listed coal producer coal producer PT.Bayan Resources said on Monday its South Kalimantan coal mining subsidiary PT.Wahana Baratama Mining has declared force majeure to its buyers after the mine heavy rainfall and flooding.

Bayan Resources Commissioner Michael Sumarijanto told Petromindo.Com that the flood had caused heavy equipments operations stopped.

?Despite the force majeure condition at Wahana, Bayan is committed to meet its obligation to its buyers by sourcing coal from other mines under the Group or buy at spot market,? Michael said.

Wahana, which is located in Satui regency, started operations early this year. Michael said in April 2008 that the mine was expected to produce 2.5 million tonnes this year. (godang)