E. Kalimantan protesters meet with KPC top leader
Thursday, August 1 2002 - 09:25 AM WIB
Around 600 demonstrators met with KPC president director Noke Kiroyan in Sangatta to read to him their 5-point statement, a source told Petromindo.Com.
In their statement the protesters demanded that the central government hand over to East Kalimantan the 20 percent stake in KPC which had been allocated to it. They also urged KPC to stop coal shipment from the province; declared that KPC had been placed under the supervision of the East Kalimantan provincial administration and the East Kutai regency government; and that any losses caused by their demonstration be shouldered by KPC.
The protesters added their action was primarily aimed at the central government.
The central government on Wednesday formally announced the allocation of the 51 percent of KPC shares. It said 31 percent of KPC shares would be allocated to the East Kalimantan provincial government and the East Kutai regency administration, and 20 percent would be for the central government.
The announcement was made after KPC formally offered on Wednesday to sell 51 percent of its share to the government.
East Kalimantan and East Kutai officials insisted on getting the entire 51 percent stake, which was opposed by KPC shareholders who argued that that such requirement was not mentioned in its contract.
Meanwhile, the East Kalimantan provincial government on Wednesday rejected the central government?s allocation of KPC shares because it only meant that Anglo-Australian mining company Rio Tinto and Anglo-American energy firm BP PLC would retain control of KPC with their combined 49 percent stake.
The provincial government also ordered KPC to stop its coal mining and coal shipment activities.
KPC operates a huge coalmine in Sangatta in East Kutai, East Kalimantan. The coalmine has capacity to turn out more than 15 million tons of coal annually. (godang)