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Bumi's Arutmin does not have coal export permit -Indonesian official
October 1, 2014 / 4:43 AM / 3 years ago

Bumi's Arutmin does not have coal export permit -Indonesian official

JAKARTA, Oct 1 (Reuters) - PT Arutmin Indonesia, a unit of Indonesia’s biggest coal miner, PT Bumi Resources Tbk, has not yet been given an export permit under new rules that come into force on Wednesday, a government official said.

As of Wednesday morning, 115 coal companies had got the go-ahead from the Indonesian mining ministry to receive export permits, Bambang Tjahjono Setiabudi, coal enterprise director at the Energy and Mineral Resources Ministry, told Reuters.

“Arutmin has not got a recommendation for export registration yet,” Setiabudi said in a text message.

The new regulations, intended to stamp out illegal mining and ensure ample coal supplies for domestic power plants, require exporters to get approval from the mining and trade ministries. Among other requirements, they need to pay outstanding taxes and royalties to get a permit.

Arutmin was one of 17 coal miners that owed royalties to the government and risked having their contracts revoked, an Indonesian official said in August.

Arutmin, which operates coal mines on the Indonesian island of Kalimantan, produced 28.8 million tonnes of coal, more than one-third of Bumi’s total output, in 2013. It owed the government $380.4 million as of end-June.

Bumi Director Dileep Srivastava said another Bumi unit, Kaltim Prima Coal, was registered and that Arutmin would follow. He said Arutmin’s exports had not been affected yet but gave no further comment.

According to an industry estimate, Indonesia’s coal exports could fall between 15 and 20 percent in October from September and could decline 5 percent this year because of the disruption caused by the new rules. (Reporting by Fergus Jensen; Additional reporting by Michael Taylor; Writing by Eveline Danubrata; Editing by Alan Raybould)

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