PTBA asked to transfer part of concession ownership to locals

The West Sumatra administration has asked state owned coal producer PT Tambang Batubara Bukit Asam (PTBA) to transfer part of its coal concession areas in the province?s regency of Sawah Lunto to local people, Neraca daily reported on Friday.

"It is better for PT BA to transfer part of its concession area in Ombilin, Sawah Lunto to the local people rather then leaving it undeveloped," the Assistant II of the West Sumatra Governor, Basril Thahir said.

If the company?s coal concession area in Ombilin is transferred to the local authority, they can be developed to improve the welfare of the local residents. Basril said the local administration had formally asked the company to surrender its concession area but no response had so far been made.

Besides operating massive coal concession area in Tanjung Enim, South Sumatra, PTBA also owns a large coal concession areas in Ombilin, Sawah Lunto but a larger part of the coal concessions in the West Sumatra province are still undeveloped. Many local people have instead carried out illegal mining in the area.

PT BA, one of the country?s major coal producers, is one of several companies which have been included in the privatization list. The company is scheduled to launch its initial public offering (IPO) later this year. (*)