A former legislator said the West Sumatra people would do their utmost to block the plan of state coal mining company PT Bukit Asam to include the coal mine in Sawahlunto, West Sumatra in its privatization plan, Republika daily reported.
Djusril Djusan said on Tuesday the West Sumatrans would not block Bukit Asam's plans to go public in the first half of the year as long as the Ombilin coal mine was not included in the assets offered for the privatization.
Djusril did not reveal the reasons behind the West Sumatrans' opposition the privatization plan but West Sumatrans are known for their dislike to foreign people controlling the province's economy. Last year, the sale of state fertilizer company Semen Padang to a Mexican fertilizer firm sparked protests in the province.
Meanwhile, Suara Karya reported that Bukit Asam would not include Sawahlunto coal mine in the assets it wanted to privatize since the coal deposit on the open-pit mine would run out in three years. The area will still have coal deposit after three years but the deposit had to be developed through underground mining system, which will require a huge investment and will not make profits amid the slump in coal prices.
The state company said the value of Bukit Asam's shares would drop if the Ombilin coal mine was included in the assets it would privatize. (*)
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