Suspension on AGM's mining operation continues

The Hulu Sungai Selatan (HSS) regency in South Kalimantan has temporarily suspended the operation of coal mining company PT Antang Gunung Meratus (AGM) for not possessing operational permit, local newspaper Banjarmasin Pos reported on Thursday.

Aras Abdullah, the assistant of the HSS regency, said that the "moratorium" on the company's operation was reimposed after the company could not obtain the required documentation for its operation.

The moratorium was firstly imposed several weeks ago but it was later lifted to give the company the time to process the remnants of its coal production and to obtain the necessary documentation for its operation. However, the suspension was then reimposed as the company failed to obtain required licenses.

Aras said that AGM did not meet the existing legal procedure in operating its mining concession area. "The company, for example, has not obtained a license from the ministry of forestry to use the forestry area for its mining operation," he said.

The local administration has offered a partnership with the mining company if it wants to continue to operate. AGM, for example, has been asked to cooperate with a company owned by the local administration to carry out the mining operation.

Meanwhile, when contacted by Petromindo.Com on Thursday, the company’s operation director Toto Suarto confirmed that AGM is in talks with the Regency. He also said that overburden removal work in mining site was still running as usual.

AGM’s coal mining area is located in four regencies in South Kalimantan province including Banjar, Tapin, Hulu Sungai Selatan and Hulu Sungai Tengah regencies. The company’s operation is formally based on the Coal Contract of Work (CCoW). (*)