13 coal mining contractors quit exploration

At least 13 of 116 coal mining companies, which obtained their contracts of works between 1994 and 1999, have stopped their exploration activities either for good or temporarily, according to the Ministry of Mines and Energy.

Suyartono, the head of the coalmine department at the directorate general of general mining at the ministry, said in Jakarta on Monday that the mining companies discontinued their exploration works because most of their mining sites were not economically viable.

"Some of them totally quit their exploration works and some others delayed their projects due to financial reasons," he said, adding that the poor quality of their coal reserves and unfavorable prices in the international market made their mining sites unfeasible for commercial production at present.

The contracts are part of the second and third generation contracts of works issued by the government between 1994 and 1999.

The companies, which totally pulled out, included PT Satria Prima Coal, PT Dinamika Jaya Abadi, PT Ekakartika Mitrajaya, PT Baraperdana Lestari, PT Bara Kusuma Indah, PT Catur Haksa Mandiri, PT Eternal Bara Dinamika, PT Nusambadha Utama, PT Terrarex Jayatama, PT Wahana Barasakti and PT Adabara Bansatra.

Those which only delayed their projects included PT Ramdany Coal Mining, PT Indexin Coalindo, PT Bara Sentosa Lestari, PT Dutaputra Tanaratama, PT Trimata Benua and PT Trimata Coal Prakasa.

Suyartono said that it was possible under the existing contracts of works to delay their mining projects for a year but they still have to pay rcontribution fee to the government and provide a guarantee that they are still serious about continuing their mining projects. (*)