Bengkulu administration urged to settle royalty case with coalminer

Visiting legislators on Monday urged the Bengkulu provincial administration in southern Sumatra to hold talks with a local coal mining firm over the company?s negligence to pay at least US$1.7 million in tax and royalty arrears over the past few years.

PT Bukit Sunur, the mining company, had failed to pay $1.7 million in royalty, land tax and water levy to central government and Bengkulu administration for the 1998-1999 period alone, it was disclosed in a meeting between a team of Commission VIII of the House of Representatives (DPR) in charge of energy and mineral resources, and provincial government officials including Aminnudin NS who heads the provincial mining office.

Aminnudin said in the meeting State Agency of Finance and Development Supervision (BPKP) was continuing to examine the royalty case.

Bukit Sunur is the largest coal mining firm in Bengkulu with export capacity of between 600,000 and 1 million tons per year. A significant portion of its coal goes to Malaysia and India. (godang)