KPC raises environment rehabilitation fund to $30 million

East Kalimantan-based coalmining giant PT Kaltim Prima Coal (KPC) has increased to US$30 million the fund for environment rehabilitation projects in its mining areas this year, Bisnis Indonesia daily reported Saturday.

KPC president director Noke Kiroyan was quoted as saying that the fund would be used to reclaim 405 hectares of no longer used mining areas.

In 2002, KPC allocated $20 million for similar projects, compared with $19.1 million in 2001 and $10.4 million in 2000, Kiroyan was quoted as saying.

Kiroyan said the area to be reclaimed this year was larger than that of the previous years.

So far, KPC had carried out replanting projects on more than 1,000 hectares of abandoned mining areas.

Bisnis Indonesia said KPC?s coal mining concession reaches 90,900 hectares, and that coal reserves in the concession area account for around half of East Kalimantan?s total.

World energy and mining giants Rio Tinto and BP Plc jointly own KPC.

KPC operates coalmines in Sangatta district in East Kalimantan. (*)