KSM has ceased production in the last 4 months
Wednesday, October 10 2012 - 09:41 AM WIB
East Kalimantan coal miner PT Kartika Selabumi Mining (KSM) has apparently ceased production in the last 4 months, sent its employees home due to legal dan financial difficulties, a source in the industry told Petromindo.Com on Tuesday.
"They've ceased operation and heavy equipment units owned by contractor PT Sinar Intijaya Putraperkasa are being mobilised out of KSM's mine," the source said, adding that the mine was troublesome since the day of purchase, with the concession not having been declared clean and clear.
According to KSM's website, the company plans to expand and ramp up production to 2 mtpa. Its 5 year plan until 2015 is to expand current mining areas in CCoW and develop new areas in KPs to increase production to 2mt in 2013 and maintain the output volume at that level until 2015.
KSM mine is located in the Sub District of Kotabangun, Muara Muntai, Loa Kulu, Kutai Kartanegara regency.
Kompas has recently published an announcement letter, stating that KSM has filed a lawsuit against its mining service company PT Sinar Intijaya Putraperkasa at the Central Jakarta District Court, demanding US$32.3 million and Rp350 billion worth of compensation.
KSM, through its legal representative Maqdir Ismail & Partners, claimed that Intijaya has committed a breach of contract against the company, which according to the plaintiff, Intijaya has failed to deliver the mining products as agreed on the ?Mining Service Agreement? signed on December 8th 2009.
The lawsuit, registered as No 453/Pdt.G/2012/PN.Jkt.Pst on October 8th 2012, was a response to the Postponement of Debt Settlement Obligation (PKPU) filed by Sinar Intijaya Putraperkasa against the plaintiff to commercial court. The Central Jakarta Commercial Court on Wednesday (Oct 3) granted the PKPU against Kartika Selabumi Mining, giving KSM up to 45 days to settle the payment.
Editing by Er Audy Zandri