South Kalimantan?s illegal coal production soars

Coal produced from illegal mines in South Kalimantan have soared to at least 10 million tons in 2002 due to limited effort to stop the activity, a government official said Tuesday.

?The 10 million figure is the conservative estimate, based on counting illegal coal transported from public roads. We are not counting the coal productions that were shipped directly from miningsite,? said Supriatna Suhala, vice chairman of illegal mining eradication team.

The figure doubled 2001 illegal coal production estimate.

Supriatna said in 2002, Indonesia Power, a subsidiary of state electricity firm PLN, bought at least 2 million tons from Sourth Kalimantan illegal miners or traders that sourced coal from illegal miners.

?Now Indonesia Power have stopped buying from illegal miners by buying coals only from credible sources with legal coal production,? said Supriatna.

Aside from local market, most of the illegal coals were exported to The Philippines, Taiwan, Thailand and other countries.

Supriatna said most of the illegal miners operated in the southern part of South Kalimantan, where access to ship the coals through illegal ports are easy.

?Most of the illegal miners are big business operating with big capitals,? he said.

He said most of illegal coal miners and illegal traders are operating through ?coal laundering? by obtaining certificate of origin and other documentation from companies that are legally producing coal, and therefore were considered legal.

Another source contacted by Petromindo.Com said illegal mining activities are backed by government and security apparatus, and therefore, saw that illegal mining will continue even more rampant in the future.

?South Kalimantan economy is powered by illegal mining. Almost all government and security apparatus in South Kalimantan ?have been contaminated? by illegal miners,? said the source. (alex)