Coal supplies to PT Semen Padang depleting

Saturday, January 20 2001 - 05:00 AM WIB

Coal supplies from three coal miners in Sawahlunto, West Sumatra, to cement company PT Semen Padang in the provincial capital of Padang have been depleting, that could force the cement producer to reduce its output or even halt its production altogether. Semen Padang spokesman Desri Ayunda said the company's coal stocks supplied from the three companies - state-owned PT Tambang Batubara Bukit Asam, PT Karbindo and PT Alied Indo Coal (AIC) - currently stood at 20,000 tons, or enough only for 10 days to operate its four cement plants, each with capacity of 15,000 tons to 17,500 tons of cement per day.

At the same time, around 12,500 tons of coal are piling up at Padang's Teluk Bayur port, ready for export by PT PCP. PCP plans to export a total of 35,000 tons of coal using KM Akar vessel.

The coal crisis at Semen Padang had infuriated West Sumatra Governor Zainal Bakar, who then summoned directors of Semen Padang and three coal producers that supplied coal to the cement company.

In their meeting in Padang on Friday (Jan. 19), executives of the three coal producers revealed that their coal output had been decreasing since the emergence of people's coal mining activities and illegal mining activities.

The executives noted that the licensing of three village unit cooperatives (KUD) in Sawahlunto to mine for coals in their areas had worsened the situation. The three KUDs are KUD Sisawah, KUD Muaro and KUD Sarilamak, they supply coals to PT PCP, which then exports the coal.

They suspected that the three cooperatives absorbed coal from illegal miners, and then sold the illegal coal to PT PCP. The cooperatives and PCP could buy coal from illegal miners at a higher price than that offered by the three coal companies because the cooperatives and the export company are not required to spend additional money for reclamation and other environmental rehabilitation projects.

Governor Zainal Bakar then instructed assistant II to the governor, Rusdi Jabar, to investigate the ill-practices of PT PCP and the three cooperatives.

Rusdi said he would first of all investigate the origins of the 12,500 tons of coal currently being loaded into Akar ship.

"If the 12,500 tons of coal currently aboard the Akar ship belong to the three KUDs, and if they could not give clear prove of the coal origins or if the coal has been bought from illegal miners... we will revoke the licenses of the three KUDs," Rusdi Jabar said. (*)

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