Indominco wants laboratory examination of alleged river contamination

East Kalimantan-based coal producer PT Indominco insists that laboratory examination is required to determine whether mercury has contaminated the Santan River and whether the metal came from the company?s mining projects as alleged by area villagers, local daily Kaltim Post reported Wednesday.

?If laboratory evidence can be produced to support their allegation, the company will take responsibility,? the paper quoted as saying Indominco?s spokesman Nasution. The company had never used mercury in its mining activities, he said.

Santan Ulu villagers in East Kalimantan?s Bontang regency complained that they could no longer use the Santan River water for their daily needs because mercury from Indominco?s project sites had contaminated it since 2001. They demanded Indominco to give them around Rp35 billion (US$=Rp8,210) in compensation for the river pollution, while the company said it would meet their demand only after the allegation had been proved.

East Kalimantan provincial authorities had stepped in to resolve the dispute, Nasution said.

Indominco, which operates a coalmine in Bontang, is wholly owned by Thai energy conglomerate Banpu Plc. It produces 3.5 million tons of coal annually. (*)