Coal miners in Kalimantan are balking as the global coal price falls, saying their local production has taken a hit and they may need to fire some workers.

Mr Eko Priyatno local chairman of the Coal Mining Association said that the 30% decline in the global coal price could push mining companies toward massive layoffs. The global coal price had been declining since March with the price falling to USD 87.56 per tonne in July compared to USD 96.65 in June.

He said that some coal miners have sold their product at below USD 70 per tonne and even USD 54 per tonne. Small coal miners were in a dire situation. Kalimantan is rich in natural resources, including coal, gas and oil and mining is an important source of regional employment.

Mr Eko who heads the APBS chapter in the East Kalimantan capital of Samarinda said that in East Kalimantan alone small coal miners employed about 60,000 workers. Mining companies also employ workers in the three other provinces of West Kalimantan, Central Kalimantan and South Kalimantan. There are no reports of layoffs yet, but if the situation continues, then there will be massive layoffs.

He added that small and mid sized coal miners were not as strong financially as their larger counterparts. Bumi Resources, Adaro Energy and Harum Energy are some of the country’s largest coal miners with operations in Kalimantan.

Source - Jakarta Globe

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