Bukit Asam files a summons on mining permit dispute

PT Bukit Asam (Persero) Tbk. has called on investors and parties not to apply for mining licenses or participate in acquiring stakes in a number of coal companies in South Sumatra following a dispute on mining licenses, said the company's legal representative in a statement on Friday.

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 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.

"Review on the case is still on going thus there is no court ruling yet being in place," the statement said.

"With this fact, we ask the governments of Lahat Regency and South Sumatra province, employees of the companies mentioned, financial institutions, companies that have signed coal supply deal to take coal from the disputed mining areas, community organizations in Lahat and South Sumatra as well as other parties to stop any attempts to apply for new mining permits, to issue new permits and/or to take part in acquisition and operation of the disputed mining areas," the company said.

The disputed mining areas are KW97PP350 that holds exploration license for 26,760 hectares and KW.DP. 16.03.04.01.03 which holds exploitation license for 24,751 hectares.

The recent legal problem could jeopardize an on going acquisition process signed by a unit of PT Adaro Energi Tbk, Indonesia's second largest coal mining firm, with one of the defendants on the case.

PT Adaro Energy Tbk announced on Tuesday that on August 19th, 2011 , PT Alam Tri Abadi, a wholly owned subsidiary of PT Adaro Energy Tbk, signed a share purchase agreement to acquire a 75 percent stake of PT Mustika Indah Permai from Elite Rich Investment Limited for US$222.5 million.

Mustika Indah develops a greenfield coal project in South Sumatra. Mustika Indah holds a mining permit, known in Indonesian as an IUP, which was granted in April 2010 for a period of twenty years. (Fitri)