Thiess suspends $20 million-coal project in Bengkulu

Australian mining contractor PT Thiess Contractors Indonesia (TCI) has suspended its plan to invest US$20 million in coal mining in Bengkulu province because the local administration had demanded overly high royalty, Bisnis Indonesia daily reported on Wednesday.

?After thoroughly studying our investment plan, we decided to suspend it,? TCI executive director Samel Rumended told the paper on Tuesday.

The initial plan was that TCI would invest $20 million in a coal mining project in Danau Masitam district in Bengkulu in 2003. The company decided to suspend its plan because the province demanded too high royalty from it, Samel said.

Samel added that TCI had carried out surveys in Danau Masitam and had found less coal reserves. Moreover, coal from the area was of low quality, he added.

He said however TCI had allocated $120 million for new investments in different parts of Indonesia in the coming two years.

TCI, Indonesia?s largest mining contractor, currently operates in Kalimantan, Sumatra, West Nusa Tenggara and Papua.

It employs more than 4,000 workers. (*)