KPC corrects press reports on Force Majeure
Press Release from Kaltim Prima Coal - 27 June 2000
Tuesday, June 27 2000 - 09:00 AM WIB
PT Kaltim Prima Coal (KPC) today moved to correct a misunderstanding which apparently exists with some media commentators.
KPC has not been able to convey coal to its port since 14 June when a small number of employees forced the company to shut down its conveyor system. Now that its stock of coal at the Sangatta port is gone and the real possibility exists that KPC will soon be unable to meet its sales commitments to customers, KPC is forced to consider a declaration of Force Majeure in regard to these and other commercial contracts.
KPC's President Director, Grant Thorne, commented: "We are very reluctant to declare Force Majeure, but we have to minimise the commercial damage that is done to our business. The fact that this is the result of illegal activity by some employees is a tragedy for the company and the nation".
It is also open to KPC to declare Force Majeure under the terms of its Coal Agreement with the Indonesian Government.
Dr Thorne added : "We have not considered the possibility of declaration of Force Majeure under the Coal Agreement. That would be the last resort and we are quite some distance from that yet".
For more information, please contact :
Bambang Susanto Kaltim Prima Coal
Tel. (021) 527 4208
Fax. (021) 527 4228