PT AGM accused of delaying coal mining operation

Coal mining company PT Antang Gunung Meratus (AGM) in Hulu Sungai Selatan (HSS) regency, South Kalimantan has been accused by the local authority of delaying its coal mining operation in the regency. The delay my affect the local government?s budget, local newspaper Banjarmasin Post reported on Friday.

Romeo Mardisun, a member of the regency-level legislative council, said in the regency capital of Kandangan on Thursday that the company agreed to pay levy of Rp 1,250 per ton of high-calory coal and Rp 1,000 per ton of low-calory coal during a meeting with the regency?s senior officials and the council?s members.

But the company?s plan to develop the coal mining in the area has not been realized. "If the company continued to delay its projects, the local budget would be in jeopardy because the levy from the company had been included as part of revenues in the budget," he said.

According to the sources said that the company could not meet its promise because it had yet to start the development of its coal mining concession in the area. The company?s operation has been delayed due to land clearance problem, they said. (*)