Stefanno Reinard Sulaiman, Jakarta – Three coal mines in Kalimantan operated by PT Tanito Harum have to suspend operations after the government revoked the firm's extended contract that was supposed to be valid for the next 20 years after the contract extension was deemed against the law.
The Energy and Mineral Resources Ministry's coal and mineral director general, Bambang Gatot Ariyono, said on Wednesday that the decision to terminate the permit was made in accordance with the law.
"If the permit is terminated, subsequently it must be returned to the state," he told press on the sidelines of a hearing in the House of Representatives.
It was widely reported that Tanito Harum, which operates three coal mines in East Kalimantan, had received a contract extension from the government after its previous contract expired on Jan. 14.
However, the government revoked the contract after the Corruption Eradication Commission (KPK) found that the contract extension was not in line with Law No.4/2009 on coal and mineral mining
The KPK argued the law did not recognize a coal constrict-of-work (KPK2B) held by Tanito Harum, instead it should base on a special mining permit (IUPK).
Bambang said the ministry had not taken further action, saying that Tanito Harun had not officially responded to the permit revocation. (bbn)