Bayan declares force majeure on E. Kalimantan coal mines

Indonesia-listed coal miner PT Bayan Resources Tbk announced Friday that its East Kalimantan coal units, namely PT Gunungbayan Pratamacoal and PT Fajar Sakti Prima have declared force majeure on its shipment since December 7 to its respective customers due to Mahakam bridge collapse accident.

Bayan said in the announcement that it has declared force majeure to its customers, Enel S.p.A and Vitol Asia Pte Ltd under the contracts of July 23, 2008 and December 8, 2010, respectively. It did not disclose volume figure for either contract.

Since the accident both mines have been unable to deliver any coal to the coal terminal run by PT Balikpapan Coal Terminal for transhipment to their customers, Bayan said.

The Mahakam bridge in Kutai Kartanegara collapsed on Nov 26, which has completely halted coal barging operations of all miners located on the upper side of the Mahakam river which normally would barge an estimated total volume of around 200,000-250,000 tonnes per day.

Last week, due to the same accident, Harum Energy Tbk had sent force majeure notice to its coal buyers. (romel)