TEMPO.CO, Jakarta - PT Thiess Contractors Indonesia, the subsidiary of Australian mining contractor Leighton Holdings, ceased their activities at two mines owned by PT Arutmin Indonesia, a subsidiary of PT Bumi Resources Tbk (BUMI). Thiess' termination was done because they said there are a number of unpaid arrears by Arutmin.
Director and Corporate Secretary of Bumi Resources, Dileep Srivastava, dismissed allegations that the arrears are not paid by Arutmin. According to Dileep, Arutmin have continued to paying Thiess' bills in accordance with the agreed contract.
Dileep regrets Thiess' way of addressing the problem, which he said is not in accordance with the mechanism set out in the contract, "but instead unilaterally suspending their mining activities and ignoring their obligations," said Dileep in a written statement Thursday, June 6, 2013.
"This termination by Thiess will greatly harm the local economy," he said. He also emphasized that, to date, both Arutmin and KPC have no disputes with any mining contractor.