PTBA may be forced to halt export on transportation fee deadlock

State coal miner PT. Tambang Batubara Bukit Asam (PTBA) may be forced to halt export after transportation contractor state railway firm KAI cut down the volume of coal transported from PTBA?s mine in Muara Enim, South Sumatra to loading ports over fee disagreement.

PTBA operations director Sukrisno (one name) told Petromindo.Com on Saturday that coal stock for export at its loading ports in Tarahan, Lampung and in Kertapati, South Sumatra were only adequate for few days shipments. ?If this thing continues, within one week PTBA will be forced to halt export until railway transportation gets back to normal,? he said. He added that KAI?s decision to cut transport volume could harm coal supply to PLN?s 3,400-MW Suralaya power plant in Banten, as PTBA is the power plant?s main supplier with around 6 million tonnes per year.

PTBA export around 25 percent of its production of around 9.5 million tonnes annually with almost 75 percent supplied to Suralaya price that is negotiated annually. According to its website, PTBA exports its coal to Malaysia, The Phillippines, Japan, Taiwan, South Korea, China, Italy, and Spain.

KAI decided to cut coal transportation volume by half after negotiation to increase transportation fee with PTBA stalled.

?KAI is abruptly reduced railway trains volume by half since Tuesday,? said Sukrisno.

Meanwhile, PTBA?s corporate secretary Milawarma said on Friday that currently PTBA has stockpile of 11,000 tonnes in Kertapati and 170,000 tonnes in Tarahan. ?Suralaya has currently 1.3 million tonnes of coal in its stockpile, which will be adequate for around two months? consumption,? he said.

KAI president Ronny Wahyudi said that his company is committed to transport coal from Tanjung Enim to Suralaya. ?KAI only stops transporting coal for export until fee settlement is reached,? he said.

KAI is asking for fee of Rp.300 (US$=Rp.9, 300) /km/tonne while PTBA only agreed to pay Rp.230. (godang)