Farmers demand compensation from Lanna Harita Indonesia

At least three groups of farmers in the Sungai Siring area in Samarinda, East Kalimantan, demanded coal mining company PT Lanna Harita Indonesia, a 55 percent subsidiary of Thai?s second biggest coal miner Lanna Resources Plc., to pay compensation for land taken over by the company.

Spokesman for the farmers Mulyadi was quoted by the local Kaltim Post daily as saying that there was some 500 hectare of land belonging to the farmers but had long been taken over by LHI without paying compensation.

The farmers also questioned the plan by LHI to acquire another 60 ha plot of land belonging to other groups, but would immediately pay compensation.

The protesting farmers occupied the office of LHI on Wednesday morning to force the company to settle its obligation. But a company official told Petromindo.com Friday that after LHI management talked with the farmers they agreed to end the blockade and left the company?s headquarters peacefully. The official, however, did not explain what was deal reached between the farmers and the company.

LHI is still at development stage and hopes to start production with the annual capacity of 1 million tons of coal early next year. (*)