Police determined to secure coal shipment from E. Kalimantan

The police will take stern action against any party who tries to block the shipment of coal produced in East Kalimantan by mining giant PT Kaltim Prima Coal (KPC), East Kalimantan police chief SY Wenas said as reported by Suara Karya daily on Thursday.

Wenas was responding to the plan by the so-called Alliance of East Kalimantan People?s Struggle (Alpera) to blockade Sangatta seawaters so as to prevent vessels from transporting coal from the area.

?If they force port workers to go on strike, we will take harsh measures against them in order to defend public interests,? Wenas said.

He said however there were no indications that Alpera?s threats would materialize.

Alpera, which claims to comprise at least 10 mass organizations from East Kalimantan, had demanded that KPC sell 51 percent of its shares to the province. They had threatened to prevent vessels from transporting KPC?s coal from Sangatta if their demand was not fulfilled.

KPC shareholders Rio Tinto and BP Plc recently agreed with the central government to sell 51 percent of KPC shares to Indonesian investors no later July 31. The previous deadline was June 30.

The central government and KPC shareholders defied East Kalimantan?s insistence that it become the preferred bidder for KPC shares. The government decided to sell KPC shares to state enterprises, Indonesian private investors and East Kalimantan Province.

However, the share divestment plan can materialize only if East Kalimantan has dropped its suit against KPC shareholders in the South Jakarta district court, which will allow the court to release their assets. Last year, the East Kalimantan provincial administration sued Rio Tinto and BP Plc for US$776 million arguing that they had blocked it to buy KPC shares.

KPC operates a huge coalmine in Sangatta in East Kutai Regency, East Kalimantan.

A significant portion of the company?s coal goes to Japan, South Korea and Taiwan. (*)