Local senior lawmaker calls people not to blockade KPC

Speaker of the East Kutai legislative council Abdal Nanang urged non-governmental organization and the people not to blockade the export shipping port of coal mining giant PT Kaltim Prima Coal (KPC) despite another delay in its divestment obligation.

?We want this problem to be resolved in a good way and with good intention,? he was quoted by Kaltim post on Tuesday.

A local NGO called Alpera has earlier threaten to blockade KPC port in Tanjung Bara, East Kutai regency, if the divestment program is not completed by April 10.

KPC operates a vast mining site in Sangatta, East Kutai.

Some of its coal output is exported to Japan. Japanese trading house earlier express concern of possible blockade due to problem in the KPC divestment program.

KPC was supposed to complete the divestment program last month. But it delayed until June because of continuing dispute between East Kalimantan administration and KPC.

The provincial administration has demanded it becomes a preferred bidder for the KPC 51 percent stake, but the company want to hold an open tender.

The East Kalimantan administration has also declined to drop an earlier lawsuit filed against KPC for the divestment delay in the past. (*)