KPC may not be able to export coal starting today
Friday, June 23 2000 - 02:30 AM WIB
The giant coal mining company in East Kalimantan PT Kaltim Prima Coal (KPC) may no not be able to export coal starting today (Friday) if the eight-day employees demonstration continues, according to a senior government official.
Director of coal at the ministry of mines and energy Suyartono was quoted as saying by the Neraca daily that KPC was already running out of coal stock at the local export port because the demonstrators had controlled the conveyor belt and prevented the transport of coal to the port.
"So tomorrow (today), KPC could not export its coal overseas if the demonstrators don't move out of the coal processing plant," Suyartono said on Thursday.
He also said that KPC might have to pay a penalty if it could not make the coal delivery to overseas buyers as stipulated in the contract.
Some 200 employees of KPC had held a protest near the company's crucial coal process plant site since June 15 to demand for a better salary. Reports have said that the demonstration had also disrupted the company's production.
Suyartono confirmed reports that the demonstration had caused daily financial losses of up to Rp 3 billion (US$1 = Rp 8,640). But he said that KPC only suffered around Rp 1 billion loss, while the government suffered of up to Rp 2 billion loss from royalty and taxes.
Meanwhile, director general of mining Surna T. Djajadiningrat said the KPC demonstration had created jitters among mining investors.
He expected mining companies to be able to accommodate the aspiration of the public and employees.
But Surna also said that if the demonstrators had already violated the existing law, the company has the rights to ask for security assistance from the authority.
He said that the police was obliged to protect the mining operation.
Surna admitted that his office had asked the police to take action against the demonstrators but within the boundary of the existing law.
Separately, the East Kalimantan Kaltim Post daily quoted KPC president Grant Thorne that the demonstration would create huge losses to all sides including the company, the public, the employees and the government.
Thorne said in a press statement that the demonstration had to be stopped because it had not obtained the necessary permit from the authority.
He said that the company would be ready to open a dialogue with the protesting employees if they stopped first their demonstration. (*)