Business Finance

Road block lifted, Bayan unit resumes coal mining operations

PT Bayan Resources announced on Friday the mining operations of a subsidiary in East Kalimantan had returned to normal as the local authorities had lifted a blockade on roads passed by the company's trucks.

Bayan director Jenny Quantero said the subsidiary, PT Perkasa Inakakerta, could transport coal again after a road connecting parts of its mining area and Lubuk Tutung port in Bengalon had been blockaded by forest rangers for 12 days.
"The blockade has been lifted by the Forestry Police, so PT Perkasa Inakakerta's trucks can once again transport coal to the port as usual," Jenny said on Friday.
A joint team of rangers closed the roads Aug. 10, after Interim East Kutai Regent Irsan Noor ordered Perkasa to halt its operations in some of their concessions in East Kutai, claiming it had violated the Forestry Law by operating in an area without a proper license.
Irsan had also ordered PT Kaltim Prima Coal, a subsidiary of PT Bumi Resources, to halt its production for the same reason.
In a media statement, Perkasa received confirmation from the Forestry Ministry that "the disputed area falls under a so-called multiple-use concession, and therefore Perkasa had complied with all appropriate regulations".
Multiple-use concession refers to forest areas designated for commercial purposes other than wood-related industries.
Jenny said the blockade did not damage the company's coal production.
"Our distribution was disrupted slightly (because of the road block), but overall our production remained fairly normal. The blockade had no impact on Bayan's total production as Perkasa is a new mine and is not one of our major production sources."
Perkasa begun operating in April 2007 in an area covering more than 20,037 hectares, and is one of eight mining subsidiaries of Bayan.
Through its mining subsidiaries, Bayan owns the rights to a total 81,265 hectares of land in East and South Kalimantan, and is Indonesia's eighth biggest coal producer.
The company is expecting to increase its coal production to 9 million tons this year from 4.7 million tons last year.
The 2008 projected sales volume is 9.9 millions tons, up from 7.1 million tons last year.
The company estimates its revenue to almost double to US$700 million, from $376 million last year. Net profit is expected to reach $100 million this year, more than tripple last year's profit of $27.5 million.