KPC stops Bengalon coal hauling

East Kalimantan coal mining giant PT.Kaltim Prima Coal (KPC) is forced to stop coal hauling from its Bengalon mine to Lubuk Tutung port following closure by local government for allegation that the company is illegally operating in forestry area.

Dileep Srivastava, spokesperson of the company?s parent PT.Bumi Resources said Monday night that despite haul road closure since Sunday, production at Bengalon ?is normal?.

Dileep also said that in Sangatta area are also affected by the closure. ?Whilst a pit or two are impacted, all our other several pits are running normally, the overland conveyor which moves bulk of our processed coal in Sangatta continues to operate normally,? he said.

Local daily Katim Post reported on Monday that police has also closed operations of Melawan and Pelikan pits and is the process to seize some 300 heavy equipments operated by company?s contractors. (godang/denny)