PTBA and Lahat regency asked to end dispute amicably

The Ministry of Energy and Mineral Resources has called on state owned coal mining company PT Bukit Asam (PTBA) and the Lahat regency authorities to end their dispute amicably.

Director General of Geology and Mineral Resources Simon F. Sembiring said in Jakarta on Tuesday that the two parties should be able to find a win-win solution to end their dispute.

“PTBA, and the local government can for example establish a consortium to operate the disputed mining area,” he said. The dispute occurred early this year when the authority of Lahat regency in South Sumatra revoked its coal mine concession rights in the regency.

PTBA, which operates a number of coal mining areas in South Sumatra, obtained a permit from the central government to operate 24,751 hectares of a coal mine in Lahat regency.

The local court revoked the permit early this year upon the request of the Lahat administration. PTBA is processing its appeal against the revocation.

Meanwhile, the production director of PTBA, Soekrisno, refused to give explanation regarding the issue, and told petromindo its third quartal coal production until september 2005 has reached 6.741.412 tonnes, lower than its 2004 third quartal production that reached 6.790.060 tonnes of coal.(godang)