Local govt halts Bayan's coal mine operation

The East Kalimantan provincial administration halted the operation of coal mining company PT Teguh Sinar Abadi (TSA) early this week, although the mining company has received a permit from the Energy and Mineral Resources Ministry to carry out exploration activities in the province.

Mangantar S. Marpaung, the technical and environmental director at the ministry, confirmed in Jakarta on Wednesday that the company?s exploration activities had been halted since Tuesday due to the local government?s ban.

?But I don?t know the reason why the company was not allowed to conduct its mining activities,? he said.

In March, this year, the Energy and Mineral Resources Ministry temporarily halted the company?s operation for failing to work according to the feasibility study (FS). TSA was allowed to resume operation in May.

TSA coal mine located in West Kutai regency and it is one of coal unit of IDX-listed coal group PT Bayan Resources. According to Bayan?s March report, TSA and its other subsidiary PT.Firman Ketaun Perkasa will produce 1 million tons in 2009. (godang)