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Jakarta Post

Three coal mines stop operations following policy change

  • Stefanno Reinard Sulaiman
    Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Thu, July 11, 2019   /   12:57 pm
Three coal mines stop operations following policy change The Energy and Mineral Resources Ministry's mineral and coal director general, Bambang Gatot Ariyono . (tribunnews.com/Fajar Pratama)

Three coal mines in Kalimantan operated by PT Tanito Harum have to suspend operations after the government revoked the firm’s extended contract that was supposed to be valid for the next 20 years after the contract extension was deemed against the law.

The Energy and Mineral Resources Ministry’s coal and mineral director general, Bambang Gatot Ariyono, said on Wednesday that the decision to terminate the permit was made in accordance with the law.

“If the permit is terminated, subsequently it must be returned to the state,” he told press on the sidelines of a hearing in the House of Representatives.

It was widely reported that Tanito Harum, which operates three coal mines in East Kalimantan, had received a contract extension from the government after its previous contract expired on Jan. 14.

However, the government revoked the contract after the Corruption Eradication Commission (KPK) found that the contract extension was not in line with Law No.4/2009 on coal and mineral mining

The KPK argued the law did not recognize a coal constrict-of-work (KPK2B) held by Tanito Harum, instead it should base on a special mining permit (IUPK).

Bambang said the ministry had not taken further action, saying that Tanito Harun had not officially responded to the permit revocation.

Meanwhile, Priscilla Jane Halim, a spokeswoman of PT Harum Energy (HE), a company that affiliates to PT Tanito Harun, said HE received numerous queries from shareholders and stakeholders about the report on the suspension of the operation of PT Tanito Harum.

“Please be advised that the suspension of operation of PT Tanito Harum does not have any effect whatsoever to HE’s mining operations,” Priscilla said in a statement received by The Jakarta Post on Friday.

“The mining operations of HE and its subsidiaries remain valid and we are in full compliance to Indonesian prevailing laws and regulations. (bbn)

Editor's note: The article is updated on Friday (July 12).