Multi Harapan Utama agrees to settle royalty arrears

PT Multi Harapan Utama, a coal mining company based in Busang, East Kalimantan, has agreed to pay its royalty arrears worth about US$8 million to the government on installment basis, according to an official at the Ministry of Energy and Mineral Resources.

Bambang Hartoyo, a senior official at the ministry's production division, said in Jakarta on Tuesday that the company had showed its strong commitment to pay the royalty arrears.

"Multi Harapan Utama had so far made several payments. The company has paid a total of US$1 million up to last week," he said, adding that the government had also another claim worth Rp 6 billion to the company. But he did not elaborate.

Multi Harapan Utama, which is jointly owned by New Hope Group of Australia, Risjad Group and PT Aminco Bara Utama, has not paid its royalties to the government since 2002. The outstanding royalty arrears are estimated to reach US$8 million this year.

State owned coal mining company PT Tambang Batubara Bukit Asam has agreed to take over the entire stake of Multi Harapan Utama which operates a mining site with coal reserves of about 126 million tons.

PT Batubara Bukit Asam initially planned to sign the takeover deal in September last year but delayed the signing due to a delay in the issuance of Multi Harapan Utama's audited financial report.

Bukit Asam hopes it could sign the takeover deal this month, but sources said that the signing of the takeover deal could be delayed again, until Multi Harapan Utama settled its debt arrears. (godang)