KPC, Arutmin conclude mining contract renegotiation

By Maryati Dimursi

Coal mining giants PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia, both are subsidiaries of IDX-listed coal company PT Bumi Resources Tbk, signed Tuesday MoUs on the conclusion of mining contract renegotiation process with the government.

Director General of Mineral and Coal R. Sukhyar said that the two firms have agreed to the main points of contract renegotiation proposed by the government including to reduce the size of their concessions.

KPC has agreed to cut down the size of its concession to 84,938 hectares from the current 90,938 ha, while Arutmin will reduce the concession to 55,573.37 ha from the current 58,898.24 ha.

Sukhyar said that so far, there were 12 mining firms holding the KK contract of work, and 53 firms holding the PKP2B coal mining contract of work which have signed MoUs on the conclusion of the contract renegotiation. Meanwhile, MoUs with 20 other KK holders and 20 PKP2B holders are still being finalized, with the government hoping to conclude it this month.

Following the signing of the MoUs, the companies and the government will engage into the process mining contract amendment to meet the terms set in the 2009 Mining Law.

Editing by Reiner Simanjuntak