Tapin's regent refuses to suspend AGM's mining operation

The regent of Tapin regency in South Kalimantan, Idris Nurdin Halidi, has rejected the local councilors' proposal to suspend the operation of coal mining company PT Antang Gunung Meratus for not paying contribution to the regency, Banjarmasin Post reported on Saturday.

The regent, Idris, said that the company's operation would not be suspended as proposed by the regent's legislative council although the AGM management rejected to pay its obligation to pay contribution of about Rp 1,250 per ton from its total production.

"But we do hope the company would change its mind and do like other coal mining company," he said.

The local representative council has urged the regency administration to halt the operation of PT AGM as the penalty for not paying the tax contribution.

The AGM management refused to pay the contribution on the ground that the company, under its contract of work, has been required to pay a royalty of 13.5 percent to the central government.

The management also said it was unfair the company with smaller mining companies in the regent which have been only required to pay a royalty of about 7 percent. (*)