Beware of big mining companies' dirty move
Tuesday, July 25 2000 - 02:30 AM WIB
The move of big multinational mining companies in Indonesia needs to be watched out as they continue to shake smaller mining companies in a bid to acquire their stake, legislators warned on Monday.
"They intentionally shake mining companies in Indonesia. After the companies are shaken, their share prices will fall down, and then they would buy out these cheap shares. So, we all must beware of their dirty trick," said Husni Thamrin, a legislator from the House of Representatives' Commission VIII on
He said that the movement of those big mining companies had been pursued in cooperation with various non-governmental organizations, and therefore, they were hardly noticed by Indonesians as a move to acquire local mining companies.
They use environmental issues, labor issues and the like to shake share prices of local mining corporations.
Earlier, it was revealed at a hearing between Commission VIII and the minister of mines and energy that a number of multinational companies had campaigned against mining activities in Indonesia in a bid to dominate mining industry in the country.
The suspected companies are Rio Tinto and British Petroleum Company that have controlled 50 percent stake at PT Kaltim Prima Coal.
Rio Tinto has been accused of using environmental issues to shake a number of mining companies. It is allegedly use Katim's labors to stake protests and demand better wages, as part of its campaign to destabilize Kaltim Prima Coal.
Rio Tinto president Noke Kiroyan once acknowledged their close relation with executives of the Indonesian Environmental Forum (Walhi). But he was quick to add that their close relation was built during their cooperation to settle problems with PT Kelian Equatorial Mining.
Legislator Nur Hassan also called on the government and all related parties to beware of the movement of world conglomerates in penetrating Indonesia.
"They mask themselves as operators, but they actually also control stakes in various mining companies in Indonesia, and also in a number of other countries," Nur Hasan said. (*)