Six small coalminers nearly go bankrupt

At least six small-scale coal mining firms in East Kalimantan nearly go out of business mainly due to rising operating costs and a drop in coal prices, Kompas daily reported Saturday.

The companies have operations in different areas along River Mahakam, the paper said.

Markus Sagrani, an executive of the East Kalimantan chapter of Indonesian Entrepreneurs Assosiaction (Apindo), was quoted as saying on Friday that the cost price of one ton of coal had nearly reached US$20, the highest sale price of the same volume of coal.

He said other factors behind the poor condition experienced by small coal mining firms in East Kalimantan included the recent rise in fuel prices and electricity charges, government levies and the ever stronger competition posed by China, one of the world?s largest coal producer.

?Coal stockpiles at some of the companies are still big because they could not sell them,? Markus said.

Markus said the companies might have to lay off their workers if their condition did not improve. (*)