KPC operation remained closed

KPC today announced that its Sangatta Operations remained closed, blockaded by SBSI strikers who have not yet respected the agreement negotiated between the SBSI National Chairman Muchtar Pakpahan and KPC President Director Grant Thorne on 19th July.

"We are very sad that damage continues to be caused to our business, and the regional and national economics", Dr. Thorne said. "Both KPC and SBSI have had to settle for less than we wanted, but we agreed so harmony could return to the Sangatta community".

KPC has limited stocks of coal at its port and, without a return to normal operations, the last shipment will occur on 26th July. Already international customers are making adjustments. One US customer is seeking guarantees on delivery, a Korean customer has cancelled an August shipment, and Japanese customers have expressed their alarm with the situation generally.

For further information please contact:

Bambang Susanto, PT Kaltim Prima Coal, Ph (021) 527 4208, Fax. (021) 527 4228 (*)