Tens of S. Kalimantan coalmining stop operations on fuel shortage

Tens of small-scale coal minings in Tanah Bumbu and Kotabaru regencies in South Kalimantan are forced to stop operations on fuel shortage, Banjarmasin Post daily reported Saturday.

The daily reported the shortage happened after police conducted raids to cut illegal diesel oil supply to the miners. Under the Indonesian fuel subsidy system, state oil and gas monopoly Pertamina sells diesel fuel at Rp.2, 100 (US$0.20) per liter to retail users and charge Rp.4, 700 per liter to industry and mining sectors. But South Kalimantan small-scale miners often illegally buy subsidized fuel by paying a certain premium from rogue traders.

The daily quoted several miners as saying that the operations stopped over the past week as heavy equipments such as trucks and excavators run out of fuel. ?If this situation continues, more miners will be forced to stop operations,? the daily quote one source.

The daily said the coal mining that already stopped operations are generally located in Kodeco, Mentewe, Sungai Dua, Serongga, Batulicin, and Satui.

Hundreds of small scale coal mining firms had operated- legally and illegally- in South Kalimantan, making the province one of the source of cheap coal for traders and users alike. One government source recently estimated that South Kalimantan produced 10 MTPA of coal annually from illegal source. (*)