Coal mining firm Adaro maintains 'force majeur' status

Fitri Wulandari, The Jakarta Post, Jakarta

Coal mining company PT Adaro Indonesia is still unable to ship coal to overseas buyers although it has resumed activities for two days following a week-long blockade by the community around the company's coal mine in South Kalimantan.

Priyadi, the company's administrative manager told The Jakarta Post on Monday that before exporting, the company first had to meet their stockpile capacity of 300,000 tons at Adaro's coal port in the Kelanis area of South Barito regency in Central Kalimantan.

"We are still declaring a force majeure. Our focus is now on building up our stock at Kelanis coal port," Priyadi said.

He added that the blockade cost the company production of 70,000 tons daily. Last year, Adaro was the largest coal mining firm in Indonesia producing some 22.5 million tons.

Adaro exports coal to 18 countries including Spain, Japan, Taiwan and Malaysia. Domestic clients include Paiton power plant, Suralaya power plant, cement producers and chemical producers Tjiwi Kimia.

The blockade on the road between the mine area and the Kelanis port by residents of Tamiang and Pulau Ku'u villages at Tabalong regency, South Kalimantan, has nearly shut down the operation.

The residents from the two villages located near Adaro's coal mine in Tabalong, blamed the company for floods that inundated their rice fields.

The villagers blockaded the road from the mine to the port and demanded the company pay compensation for the damages.

They demanded compensation of Rp 1.75 million for each family. Priyadi said there were some 700 families in the two villages.

Priyadi said laboratory results from the local office of environment watchdog (Bapedalda) showed that the flood was not caused by the company's mining activities.

"We have declined to pay compensation because there was no proof (that Adaro caused the flood). But we will support the regency's irrigation program," Priyadi said.

The villagers ended the blockade on Feb. 28 after the company agreed to support a local irrigation program.

However, Priyadi declined to give details on how much money the company would provide for the program.