PTBA to sue Lahat regency's authority

State owned coal mining company PT Tambang Batubara Bukit Asam which operates massive coal mining area in South Sumatra will sue the local government for giving a part of its concession areas to other companies,Sriwijiaya Post reported on its Wednesday edition.

PTBA's president director Ismet Harmaini said in Palembang on Tuesday that his office would take the Lahat regency government to the local state administration court for taking part of its concession area.

"We however are still open for negotiation so that the problem could be settled out of the court," he said. PTBA operates massive coal mining areas in several regencies in South Sumatra including Lahat.

A number of proposals have been made to settle the problem such as by the establishment of a joint venture between PTBA and other companies to develop coal mines in the disputed areas.

The Lahat regency's authority recently licensed a number of private companies to develop coal mines in areas owned by PTBA. (*)