PTBA reported to police for breaching licensing procedure

Wednesday, March 1 2006 - 01:58 AM WIB

The local government of the Lahat regency, South Sumatra reported state owned coal mining company PT Batubara Bukit Asam (PTBA) to police for allegedly developing a coal mine in the regency's forest area without a proper license

The local newspaper Sumatra Ekspres reported on Wednesday that in a letter sent to the local police, the Lahat regent H. Harunata accused the company of opening a coal mine in the regency's forest area without first securing the "rights to use" permit from the ministry of forestry.

As earlier reported, PTBA has begun to carry out production activities in the company's 763-hectare concession area in the regency's forest area. However, the local government opposed the mining activities because the company has not yet received the "rights to use" permit from the ministry of forestry.

The local government has insisted that although the company has secured the contract to open mining site in its concession area, it should require the "rights to use" permit from the ministry of forestry as stated in the new forestry law. (*)

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