Coal investment declines

Coal investment declines

JAKARTA (JP): The country's coal investors have pledged a
total investment of US$199.5 million for this calendar year, a
sharp fall from the realized investment of $287.9 million last
year, according to a government official.

The director general of mining at the Ministry of Mines and
Energy, Rozik B. Soetjipto, said in a statement over the weekend
that the government had issued coal contracts of work (COW) to
131 companies, of which 115 remain active despite the political
and economic turmoil.

Five coal contractors have suspended operations for some time
due to economic difficulties and another 11 coal contractors have
completely stopped.

Nine of the 11 coal contractors decided to stop operations
after failing to find enough coal deposits.

One contractor stopped activities for security problems and
another one had its contract revoked by the government on charges
of contractual violation.

Rozik said the ministry was currently processing a total of 35
applicants for new coal COWs. (jsk)