IMK faces lawsuit

Dozens of residents in Luit Raya in the Permata Intan subdistrict filed a lawsuit against gold-mining company PT Indo Muro Kencana (IMK), awholly owned subsiaday of Australian gold miner Aurora Gold over a land dispute.

In the lawsuit, residents are demanding the company pay compensation amounting to Rp 2.6 billion (US$286,501), said Herly S. Penyang, a representative of the 35 neighbors, after a meeting with North Barito Regent Badaruddin.

The demand was first made in 1987 and 1988 when the company resumed its mining activities in an area covering three subdistricts -- Tanah Siang, Kemurung and Permata Intan.

"We've often pushed our demand for compensation, but there has been no positive response as PT IMK defends that the compensation issue is over," he said.

Central Kalimantan Governor Asmawi Agani has urged the regional administration in the North Barito district to settle the problem.

Without giving an exact figure, Herly Penyang said that the villagers agreed to reduce the amount of the compensation. (*)