Bukit Asam refuses to pay contribution fee of Rp 1,000 per ton

State owned coal-mining company PT Tambang Batubara Bukit Asam (PT BA) said that the South Sumatra government?s request to pay a contribution fee of about Rp 1,000 (US$=Rp 9,500) per ton of coal produced would burden the company

Tommy Isnutomo, the director for operation of PT BA, said that if the contribution fee was imposed, PT Bukit Asam would face difficulties to compete with other coal producers from other provinces.

Speaking at a hearing with the Commission C of the South Sumatra Legislative Council on Tuesday, Tommy said that the company, besides paying royalties to the central and provincial governments, has provided financial aid for the community development.

For the national sports week, which will be held in Palembang, PT Bukit Asam has allocated about Rp 3 billion to help the South Sumatra administration host the sports event.

Bukit Asam, one the country?s major coal producers, sell most of its coal products through a coal terminal in Panjang, Lampung. From its mining area in Tanjung Enim, South Sumatera to the terminal, the coal is transported by a train.(*)