East Kutai regency blocks KPC?s hauling road

The local government of the East Kutai regency in East Kalimantan has blocked the transportation of PT Kaltim Prima Coal (KPC)?s coal from its mining area to the Bengalon port on charges of conducting mining activities in forest areas without a proper permit, Sindo daily reported on Monday.

The newspaper said that the regency administration in cooperation with the local police had stopped all the trucks carrying the company?s coal to the Bangalon port on Sunday.

The head of the local police unit in charge of forests, Zulhadi, said that the road was blocked because KPC refused to stop its mining operations in the forest areas as required by the local government.

He said that KPC has two access roads to transport its coal from its mining area to the port. ?But only one of the roads was closed because it was built on a forest area without a permit,? he said.

The regency?s acting regent Isran Noor said last week that the company had carried out coal mining activities in a forest concession area owned by PT Prodisa Trading.

Based on an audit conducted by the ministry of forestry on June 18, 2007, KPC, the subsidiary of Bumi Resources Tbk, had carried out coal mining activities on a 2,200-hectare forest area owned by PT Prodisa. (*)