KPC continues normal operation: Executive

East Kalimantan-based coal miner PT Kaltim Prima Coal (KPC) on Friday continued with its normal activities despite mounting pressures from locals, KPC spokeswoman Nunik Maulana Maharani said as reported by Detik.com news website.

Nunik said KPC?s management had recently received a letter from East Kalimantan provincial council which pressed it to stop producing and shipping its coal. She added some 500 protesters had tried to blockade KPC?s mining sites in Sangata in East Kutai regency, East Kalimantan.

She said KPC president director Noke Kiroyan had met with council leaders after receiving its letter. ?But they still could not accept the central government?s decision on the allocation of KPC shares,? she said.

?Our production activities are continuing normally. It is true that we received a letter from the council,? Nunik said.

Nunik added they had asked local military and police authorities to provide protection for KPC?s projects.

KPC on Wednesday formally offered 51 percent of its shares to the central government, a move stipulated by its contract. On the same day, the central government formally announced that 31 percent of KPC shares would be offered to East Kalimantan, and 20 percent would be for itself.

The East Kalimantan administration rejected the decision and insisted on buying the entire 51 percent stake in KPC.

KPC is equally owned by world mining and energy giants Rio Tinto and BP PLC. It operates a huge coalmine in Sangatta, and and produces more than 15 million tons of coal annually.

A significant portion of its coal goes to Japan, South Korea and Taiwan. (*)