Local govt asked to confiscate "illegal" coal

Inspector General at the Ministry of Mines and Energy Murjani Syukur has asked the authority in South Kalimantan to confiscate about 400,000 tons piled up in the villages of Desa Cempaka, Liang Amggana, Bentok and Bati Bali in the province.

"If there is a proof that the coals were collected from illegal mining companies, they should be confiscated, if not the owners should pay the distribution tax to the authority," he said during his visit in the province.

At least 400,000 tons of coals worth over Rp 400 billion are piled up in the villages after the local authority banned the coal mining companies and coal collectors to use a public road to transport their coals to a receiving terminal in the local port.

The association of coal producers has appealed the local authority to allow them to use the road but the related authority gives no response. The association said they were prepared to pay between Rp 3,000 and Rp 5,000 for every ton of coal to the government, if they were allowed to use the road.

Many companies in the province carry out coal mining activities without proper permits, causing not only on environment but also the roads. Licensed mining companies mostly use their own roads to transport their coal production. (*)