Jorong's coal mining expansion inhibits by land compensation dispute
Wednesday, May 23 2001 - 08:30 AM WIB
Coal mining company PT Jorong Barutama Greston's (JBG) plan to expand its mining operation has been inhibited by land compensation dispute with local villagers.
Site manager of JBG Saur M. Silalahi said: "Over the past year, the demand for land compensation has never ended. This problem has inhibited our expansion plan."
JBG is owned 95 percent owned Thai energy conglomerate Banpu Plc. and operates in the Tanah Laut district in South Kalimantan. The company currently produces around 2 million tons of coal per year. JBG supplies some of its coal to a few power plants in Indonesia and exports the remaining to several neighboring countries.
The company has planned to expand operation into the Asam-Asam and Jorong areas.
Silalahi said that the company had actually paid over Rp 2 billion worth of land compensation, but every time new demand emerged including on past claims made by other group of people.
He said that the company had reported its problem to the Tanah Laut administration.
JBG currently controls around 22,000 ha of mining site of which 7,341 ha is under production stage, while the remainder under feasibility study, a part which has been claimed by villagers to be their land and demanded compensation.(*)