Montero's Mining License Cancelled

Timika, Papua, Sept 21 (ANTARA) - The district administration of Mimika said it has revoked the license of PT Montero Jaya Coal to conduct coal explorations in Potowayburu, in Mimika Barat Jauh, Central Papua. Head of the district Mining and Energy Office Philipus Kehek told ANTARA news agency here Thursday PT Montero Jaya Coal has failed to carry out its contract. "We have cancelled the license of PT Montero Jaya Coal as it failed to work years after we awarded the license," Kehek said. He said PT Montero Jaya Coal was granted a concession of 9,400 hectares to conduct coal exploration in the district of Mimika Barat Jauh. PT Montero Jaya Coal already took sample of coal and the initial explorations showed that there were coal reserves in three locations around Potowayburu. The coal had a calorific value of 46,000 to 51,000 Kcal making it worth exploitations and commercially feasible, Kehek said. The administration of the regency of Mimika was ready to provide support for the exploitation of the reserves but PT Montero Jaya Coal apparently had no serious intention to carry out its project, he said. "We have been awaiting long enough but it seems the the company is not serious ," he said. Currently the concession is offered to other investors interested in carrying the plan, he said. One of the prospective investors is PT Kalteng Bara Persada, which already holds the license for coal explorations in near Potowayburu with a concession of 25,000 hectares. "Until now they have not started work , but they have said they are ready to start explorations. We hope Kalteng Bara Persada is serious," Kehek said. He said the Mimika administration would process a recommendation for renewing the license. "We will process the recommendation as soon as possible," he added.