Coal miner Jorong Barutama Greston clarifies report on flood

South Kalimantan-based coal miner PT Jorong Barutama Greston (JBG) said on Friday that floods had paralyzed its operation, forcing it to declare force majeur on its obligation to customers.

The firm clarified a report by Petromindo.Com that the floods that hit many parts of South Kalimantan had not much affected its operation. In the June 30 report, Petromindo quoted officials at Jorong as well as other coal miners in South Kalimantan, Adaro Indonesia, Arutmin Indonesia as saying that mining and hauling operations at their mines still continued despite a slowdown in activities due to the rains.

Jorong said the report was in contradiction with the real situation.

?As a matter of fact, since June 10, 2006 JBG Mine continues to be adversely affected by heavy rains and flooding. Particularly, heavy rains over the weeken on 24 June had caused an upstream river bank to collapse, causing further damage to the mine's roads and bridges,? JBG Corporate Communications Manager Inasanti Susanto said in an email to Petromindo.Com on Friday.

Inasanti said JBG?s marketing & logistics department declared on June 26 force majeure on its contracts with customers until mid-July.

Although all hauling road can be reused now, commuting within the operation area is difficult as there were several washouts along the road surface. Repair works were needed, however the main haul road needed only minor repair, Inasanti said referring JBG?s mine current situation.

JBG produced 3.08 million tons of coal last year. The company is a subsidiary of Thailand?s energy company Banpu plc. (Robert)