Illegal miners loot Bukit Asam's coalmines in Sawah Lunto

Looting at state owned coal-mining company PT Tambang Batubara Bukit Asam's coalmines in Sawah Lunto, West Sumatera continues. A number of illegal miners, who claimed themselves as representatives of the local residents have even used heavy equipment to loot coal deposits in the area.

Kompas reported on Saturday that the illegal miners used at least 27 units of heavy equipment to carry out their operation.

"The rampant illegal mining activities are worrying. PT Bukit Asam has been overwhelmed to curb the operation," the Sawh Lunto mayor Subari Sukardi was quoted as saying by the daily.

The mayor said that he feared that the illegal mining operations would discourage foreign investors from taking part in the exploration of the coal deposits in the area.

PT Bukit Asam, which also operates coalmines in Tanjung Enim, South Sumatera, has invited foreign investors to jointly develop the mining operation in Sawah Lunto. The company has received a grant worth US$2 million from Japan to boost the mining activities.

Several companies from Japan and China have expressed their interest to take part in the coal production in the Sawah Lunto mining area, which has proven coal deposits of about 36.7 million tons.

Bukit Asam is the country's third largest coal producer with the output of 11 million tons in 2000. (*)