Arutmin suspends operations due to blockage by illegal miners

Arutmin suspends operations due to blockage by illegal miners

JAKARTA (JP): Coal mining company PT Arutmin Indonesia halted
on Tuesday its mining activities in Satui, Kotabaru regency,
South Kalimantan due to blockage by illegal colliers.

The Arutmin representative office head in the province capital
of Banjarmasin, Adi Tutuko, said that the illegal miners blocked
the access road to the company's coal mine on Monday evening in
protest over the local police's crackdown on illegal colliers
last week.

He added that police had confiscated the illegal colliers'
equipment including an excavator, bulldozer and grader.

Currently, Adi said, the angry illegal miners had completely
controlled the colliery, demanding the release of their
equipment.

"Therefore, we have been forced to stop mining activities for
a while," he was quoted by Antara as saying.

A report said that illegal miners had exploited millions of
tons of coal in 14 locations in Arutmin's contract area and had
damaged the nearby environment.

Their activities are believed to be backed by affluent parties
in view of the modern equipment they use during operations.

Adi said the company had dispatched a team to negotiate with
the illegal miners amid worries that the blockade would trigger
riots.

"If the negotiation does not succeed, we will proceed with
legal action," he added.

Arutmin is 80 percent-owned by Australia's Broken Hill
Proprietary Co. (BHP) and 20 percent owned by Indonesia's Bakrie
Group. (05)