Coal mining companies in Jambi in danger of collapse

By Cepi Setiadi

Coal mining companies in Jambi Province are currently in danger of collapse as they are unable to transport their products.

The firms have been forbidden by the provincial government from hauling their output through the provincial roads since January 2014. And the condition is getting worse now as the Batang Hari river?s surface has dropped to its lowest ever level and as such cannot be passed by barges.

C.Kumaresan, Thriveni's Country Head in Indonesia told Coal Asia on Wednesday that currently almost all coal mining companies in Jambi have stopped operation.

"We cannot transport our coal through the Batang Hari river as the water surface is only 80 centimeters," he said adding that this condition has been lasting for about 30 days.

Kumaresan said currently three barges, each carrying 2000 tons of coal owned by the firm, ran aground as the water surface was so low.

Up until March, according to Kumaresan, Thriveni has only produced 100,000 tons of coal, compared with the annual target of 2 million tons this year due to the difficult situation.

Editing by Johannes Simbolon