Bumi says Arutmin not to declare force majeure

JSX-listed mining firm PT.Bumi resources said on Friday mining activities of its South Kalimantan coal mining unit PT.Arutmin Indonesia had been reduced to “below normal level” due to prolonged rainy season of heavy rainfall-related incidents in and around the mining leases.

 

However, the company said it has so far no intention to declare force majeure on shipments. “Although we note that some mining companies in South Kalimantan located to close to Arutmin's operations have declared Force Majeure on some shipment, please be advised that PT Arutmin will not be declaring Force Majeure due to the recent heavy rainfall. We will continue working closely with our customers to optimize vessel loading schedules,” Dileep Srivastava, Bumi Senior Vice President, Investor Relations said in a release.

 

Several mines in South Kalimantan including Strait Resources’ Sebuku mine and Banpu’s Jorong mine had declared force majeure on shipments.

 

Arutmin, which sells its production to domestic and export market, targets to produce 16 million tonnes in 2006. (denny)