PT BA will meet its contract with ADP

State coal miner PT Tambang Batu Bara Bukit Asam (PT BA) said that it was prepared to pay its obligation to PT Adi Putra Dewasajaya (ADP) according to the prevailing contract between the two companies so that the latter could take care of their employees.

PTBA spokesman Muliato said in a statement that the company was concerned with the fate of ADP employees, but Muliato made it clear that PT BA was not responsible for the fate of ADP employees. He noted that PTBA's responsibility was limited to those stipulated in the contract.

"PT BA will abide by all clauses in the contract that we will pay ADP through Bank Universal," Muliato said.

He acknowledged that PT BA had an obligation of around Rp 6.2 billion to PT ADP, but he noted that under the contract, his company would only disburse the payment to PT ADP after the latter met all the requirements set at the contract.

ADP secured a contract from PTBA, dated April 17, 1998, to conduct coal-mining activities in Air Kaya field in Tanjung Enim. But ADP left the coal mining fields unattended at the end of December 2000, and this prompted PT BA to arbitrarily severe the contract.

"In principle, PT BA is prepared to pay the remaining obligation to ADP any time as long as there is an official inquiry from ADP, and ADP does not break any law," he said. (*)