Kutai Kertanegara suspends mining license of PT BEL

The Kutai Kertanegara regency administration in East Kalimantan has suspended the mining license of coal mining company PT BEL because the latter had violated local government ruling, the Kaltim Post daily reported Tuesday.

Kutai Kertanegara Regent Syaukani HR warned other coal mining companies not to violate local ruling or would face similar sanction. He said that the administration was serious in upholding the various rulings including on environment, land rehabilitation, and coal transportation.

?We?re still giving time to other companies to improve their operations so not to violate the existing local regulation,? he said.

The paper, however, did not clearly said which ruling was violated by PT BEL, saying only that the company had not fully fulfilled the requirements for obtaining the mining license.

The paper said that the suspension automatically lead to the temporary closure of PT BEL?s coal mining activity. The company would be allowed to resume its mining operation once the requirements have been met.

The new autonomy law launched in 1999, gives greater power for local administration to manage social and economic affairs including local natural resources.(*)