Arutmin withholds $50 million in coal royalty<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
Local coal producer PT Arutmin Indonesia is withholding some
\nUS$50 million in royalties from its coal output, saying the
\ngovernment has not yet provided protection against unconventional
\nmining practices.<\/p>\n
The company stalled the payment from 2004 and the first
\nquarter of this year, Arutmin's operation director Endang Ruchiat
\nsaid in a hearing with House of Representatives Commission VII,
\noverseeing mining and energy, on Wednesday.<\/p>\n
\"We will pay (at least) half of the payment this year,\" he
\nsaid.<\/p>\n
The company said the government should protect the mines from
\nillegal miners, who used heavy equipment and were organized.<\/p>\n
\"We have to pay royalty, but we also demand our right to be
\nprotected,\" said Endang.<\/p>\n
Ministry of Energy and Mineral Resources director general of
\ngeology and mineral resources Simon Sembiring confirmed that
\nthere had been a delay in the payment of royalties.<\/p>\n
According to Simon, Arutmin withheld the payment as the
\ngovernment owed them value-added taxes, which should have been
\nreturned. He did not elaborate.<\/p>\n
\"Arutmin will pay it in installments. We have already a
\nschedule for that,\" he said.<\/p>\n
In its conclusion, Commission VII urged Arutmin to settle the
\ndebt immediately and disclose the payment scheme within a week.
\nThe scheme is needed to ensure that the House has all the
\nnecessary data to draft the state budget, the legislators further
\nsaid in the session's conclusion.<\/p>\n
Arutmin, a subsidiary of the country's largest coal producer
\nPT Bumi Resources, operates open pit mines in Senakin and Satui,
\nSouth Kalimantan.<\/p>\n
Last year, it produced 15 million tons of coal. Arutmin aims
\nto raise output to 18 million tons this year. The government gets
\n13.5 percent from coal sales as royalty.<\/p>\n
Arutmin's reserves increased by 31.6 percent in March this
\nyear to 375 million tons as compared to 285 million tons of
\nreserves recorded in June last year.<\/p>\n
Bumi's finance director Eddie Soebari said the increased
\nreserves were due to rising global coal prices, which made deeper
\nmining economically viable.<\/p>",
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