Blockade ends at Arutmin's coal mine

JAKARTA (JP): Coal mining company PT Arutmin Indonesia resumed on Thursday its mining activities in Satui, Kotabaru regency, South Kalimantan, after the locals agreed to end their two-day blockade, according to one of its owners, PT Bakrie Brothers.

Bakrie president Irwan Sjarkawi said the villagers dispersed on Wednesday evening following negotiations with Arutmin and the local police.

"It's all over now. The mining activities are back to normal," he said after a press conference on PT Bakrie Brothers' performance.

Irwan was, however, reluctant to provide details of the agreement reached during the negotiations.

Arutmin was forced to suspend its mining activities in Satui on Tuesday after illegal coal miners blocked the access road to its mining site in protest over the local police's crackdown on them last week.

The illegal colliers were demanding the release of their equipment such as excavators, bulldozers and graders, which were confiscated by the police.

Irwan said Arutmin suffered about US$600,000 in losses because of the shutdown.

"Arutmin failed to transport about 20,000 tons of coal from the mines to the seaport for shipment during the two-day blockade," he said.

Aside from the Satui mine, he said, Arutmin also operated a mine in Senaken and a port in Pulau Dua, both in South Kalimantan.

Arutmin produces about 10 million tons of coal from the two mines per year.

Bakrie Brothers owns 20 percent of Arutmin shares, while Australia's Broken Hill Proprietary Co. (BHP) controls 80 percent of its shares.

During the press conference, Irwan said he was upbeat that Bakrie Brothers' pipe exports would increase to about 55,000 tons this year from 31,000 tons last year.

"We have booked pipe exports of 26,800 tons in the first semester and we have another 30,000 tons of pipe orders for export," he said.

He said the company would focus on foreign markets to sell its pipes.

Three Bakrie subsidiaries manufacture pipes: PT Bakrie Pipe Industry, PT Seamless Pipe Industry Java and PT Southeast Asia Pipe Industry.

The company exports its pipes to 17 countries, including the United States and Iran.(05)