KPC dismisses reports on govt plan to suspend Melawan project

The president director of coal mining giant PT Kaltim Prima Coal (KPC), Noke Kiroyan, has dismissed reports that East Kutai authorities in East Kalimantan will close down its open pit coal mining project in Melawan.

Noke said he had clarified such reports with East Kutai regency officials, and that there was no indication that the authorities would order them to close down the Melawan project.

?In our meeting with them, they said nothing about suspending the Melawan project,? he told reporters Tuesday.

Reports said that East Kutai regent Awang Faroek had ordered KPC to suspend its mining activities in Melawan pit on the ground that the company?s environment impact analysis (Amdal) did not include the project.

Regency councilors reportedly support Awang?s move, saying that it aimed to protect environment in Melawan.

They said that KPC could resume its mining activities in Melawan only if its Amdal was revised.

KPC operates a huge coalmine in Sangatta, East Kutai. (alex)