PT Multi Harapan declares force majeure on locals blockade
Monday, March 1 2004 - 01:21 AM WIB
East Kalimantan-based coal producer PT Multi Harapan Utama (MHU) confirmed on Monday that blockade by local people had forced the company to stop operation and declared a force majeure to buyers.
Obang Sobandi, company's technical manager, told Petromindo.Com that the company had stop operation since Feb. 17 after local people demanding land compensation blocked the company's hauling road.
Following the operation stoppage, MHU, which operates in Tenggarong district in East Kutai Kertanegara regency of East Kalimantan province, planned to lay off some of its workers, Jakarta-based daily Kompas reported on Monday.
MHU plans to produce 2 million tons of coal this year, with most production goes to export markets such as Taiwan, Philippines and Japan.
MHU is owned by local business groups Napan Group, Swabara Group, and PT Asminco Bara Utama.(Godang)