Banpu and local farmers agree to settle dispute amicably

Hundreds of farmers living near the mining site of the East Kalimantan-based coal mining company PT Banpu Indominco Mandiri have finally ended the blockade on the main road linking the company's coal mine site after the company agreed to settle the dispute through a negotiation, Kaltim Pos daily reported on Monday.

HM Nasution, the external manager of the company said last week that the two parties had agreed the local legislative council (DPRD) in Kutai Kartanegara regency to facilitate the negotiation. "The negotiation would be held in March," he said.

"The meeting should first discuss the land claimed by the farmers and then deciding the price," he said.

The local farmers have claimed that part of the company's mining concession belonged to them and asked the company to pay the compensation. Banpu refused the demand, saying that the disputed areas belonged to the state.

Indominco is a unit of Thai energy conglomerate Banpu Plc.(*)