Lanna Harita?s miss 2002 coal production target due to land dispute

East Kalimantan-based coal mining firm PT Lanna Harita Indonesia said on Tuesday it managed to produce 1.5 million tons in its first commercial production in 2002 or 85 percent of its target due to prolonged land dispute in its mining area.

?Continuing land dispute had caused us unable to meet production target,? company senior officer Bachtiar told Petromindo.Com last week.

Lanna Harita was accused of illegally taking over 60 hectares of land belonging to local mining cooperatives. But the company rejects the accusation, saying it has paid compensation and obtained the necessary permits to exploit the land.

Bachtiar said thus far, there has been no solution over the land dispute, but local government had been involved to try settling the dispute.

The company plans to reduce it coal output to around 1.2 million tons in this year.

?Based on last year?s experience, we plan to reduce our 2003 output,? Bachtiar said, adding that the company would also explore for additional production area in its concession.

Lannna Harita mining site is located near Samarinda, the capital city of East Kalimantan province.

Lanna Harita is the subsidiary of Lanna Resources Public Company Limited of Thailand, which owns 63.33 percent of shareholding, while local company PT Harita Mahakam Mining and Pan United Corporation of Singapore hold 26.67 percent and 10 percent, respectively. (robert)