East Kutai regency stops ?small part? of KPC, PIK mining operation

The East Kutai regency administration in East Kalimantan has ordered the suspension of a small part of the operation of two coal mining companies, PT Kaltim Prima Coal (KPC) and PT Perkasa Inakakerta (PIK) on charges that they operate in forest areas without permits, Republika reported on Monday.

KPC is a coal unit of Bumi Resources Tbk, and PT. PIK is a coal unit of PT. Bayan Resources.

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

?We don't stop the operation of KPC and PIK. We only stop activities at location which are illegal," he said.

Based on the regency's investigation, KPC and PIK illegally operate on 2,200 hectares and 300 hectares of land owned by Prodisa respectively.

Bumi Resources? spokesman Dileep Srivastva dismissed the East Kutai regency's accusation that the company had violated the forestry permit was groundless.

According to him, KPC continues to operate as usual despite the local government?s request to stop its mining activities. ?Our exploratin activities runs as normal,". (*)