Rio Tinto coalmine disrupted by flood, report says

Friday, February 16 2001 - 06:00 AM WIB

Rio Tinto Group's 50 percent- owned coal-mining company, PT Kaltim Prima Coal, may delay shipments after floods disrupted production at its mine in East Kalimantan, Indonesia, the Tex Report said, without citing sources.

The extent of the damage at the mine, caused by heavy rain, hasn't been determined, the report said. Rio Tinto, the world's No. 2 mining company, and BP Amoco Plc equally own the mine. Supply of the coal to power stations in Japan have not yet been affected, the report said. The coalmine, the largest in Indonesia, produces 14 million metric tons a year.

Rio Tinto's Indonesian unit said it won't increase its investment or production this year because of political unrest and confusion about what will be included in a new mining law. (*)

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