Govt says Harum declares force majeure on coal shipments

IDX-listed coal mining group Harum Energy Tbk has sent force majeure notice to its coal buyers after a major bridge in East Kalimantan collapsed and halt barging operations, an official with Ministry of Energy and Mineral Resources said on Wednesday.

The ministry?s Coal Director Edi Prasodjo told Petromindo.Com that Harum?s marketing department has declared force majeure to its buyers. ?The company, however, has yet to formally report the declaration to the government,? he said.

Edi also said that the government is closely watching possibilities of other miners which are affected by the collapsed bridge to follow suit.

A Harum official contacted by Petromindo.Com for confirmation did not return the call.

Sources said that the notice was sent on Tuesday and involving the company?s three mines that use Mahakam river as barging point. The mines are Mahakam Sumber Jaya, Tanito Harum and Santan Batubara.

Harum on Tuesday said that its November shipment would not be affected by the incident but had contacted buyers for possibilities of shipment rescheduling.

The bridge that collapsed on Saturday at Kutai Kartanegara part of Mahakam river in East Kalimantan has completely halted coal barging operations of miners which are located on the upper side of the river with estimated volume of around 200,000 tonnes per day.

Sources said that it will take 10-15 days before barging operations will be allowed to recommence at Mahakam. (godang/denny)