Rio Tinto says coal production continues in East Kalimantan
Rio Tinto says coal production continues in East Kalimantan
SYDNEY (Dow Jones): Coal production is continuing at the East Kalimantan operations in Indonesia run by PT Kaltim Prima Coal (KPC), a company jointly owned by the Anglo-Australian miner Rio Tinto (RTP) and BP-Amoco PLC. (BPA) of the UK.
Rio Tinto said Monday that coal production is continuing despite the temporary withdrawal of all its expatriate employees over the weekend as relations between Australia and Indonesia soured over the issue of East Timor.
The company said in a statement that it expects expatriate employees will return to the mine site in Sangatta soon and is confident that supply to customers won't be affected.
PT Kaltim Prima Coal employs fewer than 50 expatriates in a total workforce of about 2,600.
While the mine is in a remote area that has been unaffected by anti-Australian demonstrations, PT Kaltim Prima Coal President Director Grant Thorne said the company had decided to pull out its expatriate staff as a precautionary measure arising from anti-Australian sentiment around the main provincial city of Balikpapan.
Anti-Australian demonstrations have flared up in some parts of Indonesia as Australia leads a UN peacekeeping force into the troubled province. Australia lobbied hard for the multinational force to be allowed into the territory to quell the violence, which erupted when the half-island voted overwhelmingly for independence last month.
Contractors to Kaltim Prima Coal have also chosen to withdraw most of their expatriate employees, Rio Tinto said.
Kaltim Prima Coal, or KPC, which produces around 15 million to 16 million metric tons of steaming coal a year.
Aurora
Meanwhile, Australia's Aurora Gold Ltd. said Monday that it has evacuated dependents of its expatriate staff from Balikpapan in Kalimantan, due to continuing unrest in Indonesia.
"Some downsizing throughout the group will be implemented this month and exploration and operational staff at the Toka Tindung Project in North Sulawesi have been cut back," the gold miner said in a statement to the Australian Stock Exchange.
This means that Toka Tindung Project is on care and maintenance, and not operating.
Mining at Aurora's Mt. Muro mine in Central Kalimantan is continuing.
Aurora's move follows decisions by Broken Hill Proprietary Co. (BHP) and Rio Tinto Ltd. (RTP) to evacuate some of their expatriate staff and families from Kalimantan, as a precaution against rising tensions between Indonesia and Australia over the crisis in East Timor.
Australia is leading a UN-approved peacekeeping force to East Timor.