MEMR to revoke permit of Nusantara Termal Coal

The Ministry of Energy and Mineral Resources (MEMR) said it would revoke the PKP2B coal mining contract PT Nusantara Termal Coal as the company has failed to heed earlier warnings over royalty arrears, Kontan reported on Thursday.

Paul Lubis, Secretary of the Directorate General of Mineral and Coal at the ministry, was quoted by the paper as saying that the company has yet to pay royalty arrears totaling US$11 million for the period of 2010-2013. ?We have given them warning (to pay the royalty obligation) three times, the last of which was on October 2,? he said.

He added that because of its failure to pay the royalty obligation, the company has failed to obtain the necessary export permit.

Nusantara Termal, a unit of the Permata Resources Group, has a 2,832 hectares coal concession in Jambi.

Paul said that the ministry is currently drafting the necessary decree for the termination of Nusantara Termal?s coal contract, but if the company is able to settle the royalty arrears before the decree is issued, the ministry would not revoke the firm?s mining contract.

Kontan said that another Permata Resources? coal unit PT Riau Bara Harum has yet to also pay royalty arrears worth $20 million. (*)