Kotabaru regent to audit Arutmin for improper conducts

The Kotabaru regency in South Kalimantan has threatened to audit the country’s largest coal producer PT Arutmin Indonesia for conducting improper mining activities either through its own operation or its affiliates, Investor Indonesia daily reported on Tuesday.

The main accusation levelled against the firm is that it is involved in illegal mining activities. However, the local authority did not provide details on "the illegal mining activities".

The Kotabaru regent, Sjachrani Mataja said on Monday that Arutmin, which is controlled by PT Bumi Resources, had also failed to carry out reclamation activities at its former mining sites or the former mining sites of its affiliated companies

The regent said that the local government would soon ask a direction from the Ministry of Energy and Mineral Resources on how to carry out the audit.

He also blamed Arutmin and its affiliates for failures to pay royalties on time and lacking commitment to protect the environment. (*)