Exclusive: Govt asks KPC not to declare force majeure
Wednesday, March 28 2001 - 04:30 AM WIB
Director general of geology and mineral resources Wimpie S. Tjejep said on Wednesday that his office had asked the East Kalimantan coal mining giant PT Kaltim Prima Coal (KPC) not to declare force majeure on its coal supply.
Wimpie said that despite the decline in KPC production due to the labor protest at its contractor, the production level was still sufficient to supply the market. He added that the government had asked the security force to end the hostage of KPC heavy equipments.
Speaking to Petromindo.com on the sidelines of a ceremony, Wimpie said that KPC could "understand" the government demand.
Earlier, KPC spokesman Bambang Susanto said that the company would declare a force majeure on its coal supply to several countries if labor strikes at its mine continue.
He said that the labor strike, which started in early February this year had forced the company to cut its coal output by 50 percent as the striking workers held the company's shovels hostage.
"If the labor strike remains unsettled, we will declare a force majeure on our supply this week," Bambang told Petromindo.com.
Many fear that the force majeure announcement by a large foreign company like KPC would further erode investors confidence in the country to a new low.(Godang)