Dispute between giant mining firms ends in Lahat

A prolonged dispute taking place in the South Sumatra regency of Lahat and involving two giant mining companies PT Bukit Asam and PT Adaro has come to an end, with the verdict of the Supreme Court affirming the regency administration’s authority over the 24,752 hectare mining site that is located in the regency.

Deputy chief of the Supreme Court Farhan Berza revealed on Friday that the Supreme Court had decided to affirm the Lahat regent’s authority over the disputed mining site and that the copy of the decision made on Oct. 11 would be delivered to all conflicting parties, including publicly listed PT Bukit Asam.

“Bukit has to accept the Supreme Court’s verdict as final decision in the case because law is the supreme commander in this republic,” he said.

The Supreme Court made the decision to review, which was requested by Lahat Regent Syaifuddin Aswari Rivai in relation to the verdict of the State Administrative Court (PT TUN), which accepted Bukit Asam’s claim on the disputed site.

Lahat chief legislator Herliansyah hailed the Supreme Court’s verdict as the final decision that affirmed the regency administration’s authority over natural resources, including coal deposits and the mining site.

“The regency legislatures stand behind the regency administration’s decision, which has issued several coal work contracts in the past few years,” he said.

The regency administration has also issued a work contract to PT Mustika Indah Permai, owned by Adaro Group, but it suspended its operation following a lawsuit filed by Bukit Asam.

Adaro has acquired a 75 percent of Mustika Indah Permai’s stakes at a price of US$222.5 million from Elite Rich Investment Limited in order to improve its coal production. Adaro has secured several coal work contracts in South Kalimantan and has exported its coal production to China and Japan.