Nusantara Thermal Coal?s boss under police investigation over manipulation

The operation of the Jambi-based coal mining company PT Nusantara Thermal Coal (NTC) has been temporarily suspended following the police investigation over an alleged manipulation conducted by the company?s shareholders, Indopost newspaper reported Wednesday.

The Jambi police office said Tuesday that a number of NTC executives and its shareholder Ratna Handini were currently under investigation following a report that the company had manipulated its contract with subcontractor PT Titan Mining Energy.

The local police officer said that PT Titan had claimed to have paid a total of Rp 7 billion to NTC as part of the deal, but the latter instead named an Indian company as its subcontractor to carry out mining works.

Bambang Gatot Ariyono, Director of Coal and Mineral Enterprises at the Ministry of Energy and Mineral Resources told Petromindo.Com on November 28, 2008 that the ministry decided temporarily close the mine?s operations as the company did not adhere to good and safe mining method.

?The closure will remain in effect until after the miner proves to be able to improve its mining method,? he said.

According to Petromindo.Com data, NTC holds a 30-year concession over the mine under a Coal Contract of Work with the government. The Muara Bungo concession, which covers an area of 28.6 km2, has JORC Code compliant proved ore reserves of 22.9 million tons and probable ore reserves of 1.1 million tons, as well as measured resources of 31.7 million tons and indicated resources of 5.2 million tons. (*)