KPC may temporarily close down operation

Coal giant PT Kaltim Prima Coal (KPC) may have to temporarily shut down its operation in Sangatta, East Kalimantan, if the blockade of facilities by its protesting employees continue.

"The decision is still being evaluated thoroughly by the management, particularly if there's no positive development in the negotiation with the KPC employees grouped in the SBSI (labor union)," said general manager for external affairs Bambang Susanto.

"A temporary closure would be a very difficult choice for us, but we have to do it if there's no longer activity," he added.

A group of KPC employees resumed their protest last week by blockading key facilities and prompting the company to announce a force majeure again on Monday. The company had to take the measure because of diminishing stock of coal which would not be enough to meet sale contract with overseas buyers.

Bambang said that the plan to temporarily shut down operation might be taken later this week or next week.

"We have discussed it several times and the tendency (toward temporary closure) is very possible," he said. (--R.Amoros--)