Bukit Asam again reprimands Adaro over mining permit dispute

State coal producer PT Bukit Asam Tbk has again issued public reprimand against PT Adaro Energy Tbk, the second largest coal producer in the country, its affiliate companies and related parties not to take any transactions pending completion of legal process over the mining permit.

Bukit Asam said the dispute over mining permit is being under judicial review by the Supreme Court and no court ruling has been issued.

The company calls on Adaro, its subsidiaries and related parties to respect the ongoing legal process until court ruling is in place (inkracht van gewjsde).

PTBA had filed civil lawsuits in 2008 against several South Sumatran coal miners including PT Mustika Indah Permai, PT Bukit Barack Alam, PT Muara Alam Sejahtera, PT Bara Alam Utama, and PT Bumi Merapi Energi for carrying out mining activities on Bukit Asam's concessions in Lahat Regency and Muara Enim.

The company also had sued Lahat Regent, Lahat Regency's Energy and Mineral Resources Office and South Sumatra Province's Energy and Mineral Resources Office for issuing mining permits for those companies to operate in its mining areas.

Supreme Court had ruled in favor for Bukit Asam in 2009 but the defendants have applied for a review on the case, the statement said.

Bukit Asam denied claims made by PT Adaro Energy Tbk that PT Bukit Asam has no rights over the dispute mining concessions as Bukit Asam?s exploitation mining rights has been revoked by the South Sumatera Governor. However, Bukit Asam argues that the governor?s letter does not eliminate the rights of PT Bukit Asam. Bukti Asam and in fact it remains as the authorized mining concession holder over the disputed land based on the second stipulation issued by the South Sumatera governor.

Bukit Asam said it has the right to upgrade the exploration mining permit (KW 97PP0350) over 26,760 hectares of land to an exploitation mining permit (KP Exploitation). (roffie/romel)