E. Kalimantan govt suspends two coal units of Bayan Group

The East Kalimantan provincial administration has suspended the operation of coal miners PT Bara Tabang (BT) and PT Fajar Sakti Prima (FSP), subsidiaries of the Bayan Group, for trespassing forest conservation area in Kutai Kartanegara regency in transporting coal, reports said on Monday.

East Kalimantan Governor Awang Faroek on Friday signed a decree suspending the operation of the two firms for an indefinite period of time, Kompas reported.

The paper quoted Head of the East Kalimantan Environmental Agency, Riza Indra Riadi, as saying that despite earlier warning from the government, the two firms had continued to transport coal via the local Kedang Kepala River, which is part of a conservation area, since March.

He said that this is in breach of the environmental impact assessment document (also known here as Amdal), which stipulates that the companies must transport the coal via the Belayan River.

The firms reportedly switched to the Kedang Kepala River because barges can?t pass through Belayan amid the current drought.

Riza said that the government would only lift the suspension if the firms could convince the authorities they would abide by the law. Otherwise, the local administration would revoke their mining permits, he added.

Meanwhile, Tribunkaltim.com quoted General Affairs Manager of Bayan Group, Syahbuddin as saying that the group will follow all government regulations. He declined to provide further comments. (*)