Mass organizations threaten to blockade KPC?s coal shipment

A group of mass organizations in East Kalimantan has threatened to blockade coal shipment by PT Kaltim Prima Coal (KPC) from the province, setting June 30 as the deadline for the company to sell 51 percent of its shares to the local administration, local daily Kaltim Post reported on Saturday.

?We give time until June 30 to start the process of divesting the shares to East Kalimantan. If the deadline is not fulfilled, there will be no choice for us other than blockading KPC?s coal shipment,? said Agus Djoka and Rusdi Noor of the so-called Struggle Alliance of East Kutai People (Alpera).

The Alpera leaders told Kaltim Post any divestment delay would only benefit KPC while keeping the East Kalimantan people waiting indefinitely. ?It is a pity that East Kalimantan and East Kutai people remain poor although their areas are rich in resources,? Agus said.

Alpera comprised no less than 10 mass organizations. They had met several times to plan the coal shipment blockade, Agus said.

KPC operates a huge coalmine in Sangatta in East Kutai Regency, East Kalimantan. The company, equally owned by world mining and energy giants Rio Tinto and BP Plc, has annual output of around 17 million tons, a significant portion of which is for exports.

The government and KPC shareholders had this year set end-June as the deadline for the company to sell the 51 percent shares of the company to Indonesian investors according to its contractual obligation. The government recently decided to sell KPC shares to state companies, Indonesian private investors and East Kalimantan administration.

Meanwhile, Rio Tinto and BP Plc insist that the shares can be sold only after East Kalimantan has dropped its legal suit against them. The province last year sued KPC shareholders for US$776 million in the South Jakarta district court in compensation for their delay to sell 51 percent shares of KPC to the province. (*)