PT Bukit Asam urged not to close down Ombilin coal mining

The local administration of Sawahlunto regency in West Sumatera has urged state owned coal-mining company PT Batubara Bukit Asam (PT BA) to maintain the operation of irs coal mine in Ombilin in the regency, Sumatera Express reported on Tuesday.

Rusdi Jabar, a senior official at the local regency office, said in a seminar in Padang, last week, the closure of the Ombilin coal mine would not only affect some 1,200 people involved in the mining activities but could also disrupt the operation of many big companies in the province which at present rely on coal supply from the Ombilin mine to support their activities.

According to Jabar, the closure of the Ombilin mine, which contributes about 45 percent of the regent?s gross domestic products (GDP), would certainly diminish the local economy since the closure will send the existing workers to other areas.

As the result, the demand for goods and services will also decline, which will in turn squeeze many business opportunities in the regency, he added.

He said that from the demand side, the closure could also affect the operation of major local companies such as cement producer PT Semen Padang and steam-fired power plant PLTU Sijantang, which at present rely on coal supply from the Ombilin mine to support their operations.

In addition, the local railway service of PT Kereta Api Indonesia, which handle the transportation of the coal from the Ombilin mine would be also hurt by the closure of the mine, he said.

PT Bukit Asam has planned to close down the operation of its Ombilin coal mine as part of its consolidation program. The company said it will in the future focus on the operation of its Tanjungenim coal mine in South Sumatera, which does not only have bigger coal reserves but also more efficient. (*)