KPC pays Rp 1.5b in daily royalty

The East Kalimantan coal mining giant PT Kaltim Prima Coal (KPC) pays some Rp 1.5 billion in royalty to the government everyday out of its coal production of 50 tons per day, KPC general manager Irwan Purwo told visiting legislators from Jakarta.

"If there's a disruption, there will be huge losses," he said.

Several members of the House of Representatives visited KPC operation in the Sangatta area in East Kalimatan this week. East Kutai Regent Awang Faroek Ishak accompanied the legislators.

Elsewhere, Irwan said that KPC employs more than 2,800 people plus another 3,000 employed by its contractors. KPC produces 15 million tons of prime quality coal products.

He said that most of the products were exported, and some consumed locally by gold mining giant PT Freeport Indonesia. (*)