JAKARTA (TheInsiderStories) – PT Arutmin Indonesia, unit of coal miner PT Bumi Resources Tbk (IDX: BUMI), has proposed a contract extension and a change of status from a coal mining concession work (CoW) to a special mining Operations permit, local media reported. Based on energy and mineral resources (EMR) data, the contract will expired in 2020.
The company also is one of seven first – generation CoW holders. Based on Government Regulation Number 23 of 2010 concerning Implementation of Mining and Mineral Mining Business Activities, the miner open to submit the applications for an extension of the permit not later than six months before the end of the contract.
According to director general at EMR ministry, Bambang Gatot Ariyono, said on Thursday, that his party was still processing the contract extension. Based on the 2009 mining law, Arutmin has a mining area in South Kalimantan with an area of 57,107 ha.
Bumi Resources is targeting production up to 90 million tons of coal in 2019. The amount comes from PT Kaltim Prima Coal (KPC) 60 million tons of coal and Arutmin 30 million tons of coal. The parent, through its majority-owned subsidiaries, is Indonesia’ largest thermal coal producer.
Beside, Arutmin, KPC, also are still waiting for the government’ official decision related to the conversion permit. The company permit will be completed in 2021.
“We are still waiting for an official decision from the government. Before there was clarity, we did not speculate. Let wait and see,” said BUMI’ director Dileep Srivastava recently by adding he did not want to give a statement that preceded it.
Based on the official data, directly, BUMI controlled 70 percent Arutmin’ shares and 20 percent indirectly through PT Green Resources. BUMI owns 99.50 of green shares at its unit. The miner also holds 25 percent of KPC’ direct shares and 26 percent indirectly through PT Sitrade Coal.
On Nov. 2, 1981, Arutmin signed the CoW with state-owned firm, PT Bukit Asam Tbk (IDX: PTBA) for exploration and exploitation of coal reserves in Southeast Kalimantan, while KPC was signed with PTBA in 1982.
Based on EMR ministry data, beside PT Tanito Harum whose licenses have been revoked, there are seven other contract that will expire in the next five years. The companies are PT Kendilo Coal Indonesia in 2021, KPC in 2021, PT Multi Harapan Utama in 2022, Arutmin 2020, PT Adaro Indonesia in 2022, PT Kideco Jaya Agung in 2023, and PT Berau Coal in 2025.
by Linda Silaen, Email: email@example.com