Govenor underestimates impact of BHP Billiton's mines closure
450 workers laid off
Saturday, June 13 2009 - 02:13 AM WIB
Teras said in Palangkaraya, Central KalImantan Friday that the five companies held the PKP2B or Coal Contract of Work (CCoW) issued by the central government in 1998 but up till now they had yet to start operation.
Teras hoped any mining contractor that will take over BHP Billiton assets should a serious one and is willing to soon develop the mines.
Even though the CCoW permit is issued by the central government, the transfer of right should be made at the knowledge of head of provincial government as a representative of central government in a region. ?The provincial government won?t give any recommendation for an unserious contractor,? he was quoted by Kompas as saying.
Teras said that the entry of a new company that is really serious in production activities would be in line with the local government?s plan to build a railway track that will transport coal and other natural resources from each points of the region. The railway track project is expected to start in 2010, he said.
Meanwhile, President Director of PT Lahai Coal BHP Billiton Indra Diannanjaya said that the five CCoW holders in Central Kalimantan province, namely PT Lahai Coal, PT Maruwai Coal, PT Juloi Coal, PT Kalteng Coal and PT Sumber Barito Coal, had yet to start production.
PT Lahai Coal is in construction phase. Meanwhile other CCoW holders are still in the feasibility study and exploration phase, he said.
Indra also said that BHP Billiton would lay off 450 workers employed by the firm's five subsidiaries as the consequence of the firm's decision to halt mining activities of the five firms.
"A total of 450 workers will be laid off. Most of them are in Central Kalimantan, a small number in East Kalimantan and Jakarta," Indra was quoted by Bisnis Indonesia".(*)