Banpu might be forced to cease Kitadin mine ops

Thai energy conglomerate Banpu Plc., may be forced to close down its Kitadin mine operations in East Kalimantan next year if it is unable to exploit reserves in the area that is currently inhabited by villagers, a company official said on Wednesday.

Banpu Indonesia president Somyot Ruchirawat told Petromindo.Com that Kitadin is currently in talks with villagers over land compensation payment, but said that the talks might be deadlocked as the villagers demanded far higher payment than the company could afford.

Somyot said Kitadin?s remaining reserves are located in the area currently inhabited the villagers.

Kitadin will produce 1.5 million tonnes this year, Somyot said. He added if Banpu succeeded in relocating the locals, Kitadin would be able to produce 2 million tonnes per annum for the next few years. (alex)