Regent halts Miang Besar coal terminal construction

Authorities in East Kutai regency, East Kalimantan has told PT Miang Besar Coal Terminal (MBCT) to stop its activities, arguing that the firm has made a mistake by selling its permit to a foreign investor, East Kalimantan-based daily Kaltim Post reported on Friday.

?We are waiting for a clarification from the management of MBCT. While we are waiting for the clarification, the construction activities should be halted, since the firm has not followed the existing regulations,? East Kutai Regent Isran Noor was quoted as saying.

?We have been informed that the operating permit of MBCT has been sold (to foreigners). And the sale of the permit has been reported to the Government which issued the permit,? he said.

Meanwhile, Johansyah Ibrahim, Head of Transportation, Communication and Information at the regency, said his office had received information from the public that MBCT had sold its permit to ?a foreign party?.

?We are still waiting for information and clarification from MBCT regarding the value of the transaction. We heard that the transaction value reached US$75 million,? he said.

MBCT said in its website that it will develop, own and operate a multi-user public coal terminal on Miang Besar Island with the cooperation of the East Kutai Regency to serve the coal mines in the East Kutai Regency and other areas of Kalimantan.

The island of Miang Besar is situated 4.5 km from the mainland. MBCT?s ship-loading facilities will be designed to accommodate bulk carriers up to 400,000 deadweight tons (Valemax), barge unloading, rail, truck and conveyor receiving facilities, and stockpile facilities capable of storing up to 7.2 million tons of product. MBCT will have a staged shipping capacity of 40-80-120-160 million tons per annum. MBCT is expected to be in operation by late 2014.

According to the newspaper, the coal terminal project was launched on June 21, 2009 and the firm has thus far acquired 100 ha for the project. (*)