Indo Wana suspends E. Kalimantan coal mine

By Romel S. Gurky

IDX-listed PT Sekawan Intipratama Tbk said that its 65 percent-owned coal mining subsidiary PT Indo Wana Bara Mining Coal has suspended mining operation at its coal concession in East Kalimantan.

Sekawan said in a statement Monday the decision to suspend the mining operation was made in light of tighter regulatory environment, which among others require miners to have so-called clean and clear certification and registered exporter status to be able to export coal, and also because the company has yet to complete compensation negotiation with local people in relation to land acquisition.

The company said that Indo Wana has started the suspension of the mining operation since November 12, but does not include activities related to planning, and pre-operation of the construction of a mine-mouth power plant and biomass power plant outside the mining area

Indo Wana holds a 5,000-ha coal concession in West Kutai Regency, East Kalimantan, which has coal resources estimated at 533.31 million tons, and reserves estimated at 288.1 million tons.

Editing by Reiner Simanjuntak