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Indonesia downplays coal embargo threats from Kalimantan

Steel News - Published on Wed, 30 May 2012

It is reported that the government has played down threats of an embargo on coal shipments from Kalimantan saying they were made by only a few organizations and could be subject to criminal charges.

Mr Jero Wacik Energy and Mineral Resources Minister said “Any form of embargoing or blockading [shipments of coal] is a violation of the law. Besides, who has made these threats? One or two NGOs should not be regarded [as representatives of all coal stakeholders in Kalimantan.”

The controversy surrounding the lack of supplies of subsidized fuel to the mineral-rich island of Kalimantan has continued to heighten after several local officials and politicians threatened to call for an embargo on coal shipments from the island.

Media reports also said a number of local NGOs threatened to blockade rivers used as coal distribution routes should coal producers insist on shipping the mineral.

The dispute began earlier this month when four Kalimantan governors and a number of regents in the island protested over the allocation of subsidized fuels for the island.

The local leaders argued that the supply of fuel to the four provinces in Kalimantan had to be raised from 7% of the total national allocation to 14% due to rapid economic development.

Source - Jakarta Post

(www.steelguru.com)

Posted By : admin on Wed, 30 May 2012
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