Indo Muro Kencana lays off workers, threatens to close operation

Gold mining company PT Indo Muro Kencana, a subsidiary of Australian mining firm Aurora Gold, has laid off workers, threatening to close its operation in North Barito regency, Central Kalimantan this year if the authorities fail to stop the occupation of its gold mine by the Dayak tribal people, Kapos reported.

The paper quoted an anonymous worker of the company as saying that the company had laid off 100 workers following a drop in its activities due to the continued occupation of its gold mine by the local people.

Thousands of Dayak tribal people have been occupying the company's contract area in three districts of Betmen, Halubai and Permata for more than a half year, claiming the land belonged to their ancestors. They have also built houses on the occupied land, illegally mining gold in the area.

The residents of the six villages near the gold mine have been supporting Indo Muro, but they as well as the local authorities could not stop the occupation.

The paper quoted by Indo Muro's spokesman Gozali Lubis as saying the company might close its operation in May this year if the occupation continued. (*)