Local govt shuts down coal mine for violating ministry regulation

The administration of Lahat regency in South Sumatra has temporarily closed down coal mining company PT Dizamatra Powerindo (PTDP) for violating the government?s mining regulation, Sriwijaya Post reported Friday.

Kosasih, a senior official of the Lahat mining office, said in Palembang on Thursday that the mining company did not report their sales regularly as stipulated in the ministry regulation.

They did not provide sales documents as the basis for payment of royalties either, he said, adding that PTDP also paid its royalty based on free on truck (FOT) rather than free on boat (FOB) as stated in the circular issued by director general of coal, mineral and geothermal. (*)