Kelian must fulfill people's demand: official

The giant gold mining company in East Kalimantan province PT Kelian Equatorial Mining (KEM) has to fulfill the demand of the local people for compensation over land acquired by the company to immediately solve the current problem, according to director general of mining Surna T. Djajadiningrat.

"Just fulfill their demand, as long as it is feasible for the company. I have told KEM several times that it is not only oblige to comply to (government) ruling but must also satisfy the aspiration of the people," Surna was quoted as saying by the Bisnis Indonesia daily.

He added that according to the mining contract of work verse 23, mining firms must understand the aspiration of the local people.

"I have also told the company several times that we (Indonesia) are in a transitional process from a centralistic and dictator government into a more democratic environment. So if there are things that go beyond (the limit), it's part of the process and it's the cost that we must pay," he said.

Surna said that some firms had understood the situation and their obligation to the local community, but there were others who seemed to not want to appreciate.

"I see that if the companies can understand this, there won't be any difficulties. But the problem is the foreign CEOs from Australia and the U.S. who keep insisting on the written contract."

Surna was responding to reports that the people of the Kebut area in West Kutai regency had started to blockade again the main road to KEM mining site, causing the company to be unable to deliver basic supplies.

After closing the road for weeks, the people initially agreed to open the road last Thursday on the prospect that the company would satisfy their demand for the land compensation.

But it turned out that the negotiation was progressing slower than expected.

KEM is 90 percent owned by the giant Rio Tinto mining group.

Separately, KEM administration manager Moh Nispalah was quoted by the local East Kalimantan Kaltim Post daily as saying that the negotiation went smoothly but company and the people had yet to reach agreement.

Nispalah said that KEM had raised its compensation offer to Rp 5,000 per square meter from Rp 4,600, while the protesting villagers had cut down their demand to Rp 15,000 from Rp 19,000 per sqm.

"The raise offered by KEM and the cut proposed by the people have become a temporary agreement," he said.

Nispalah said that the company would also ask the Kebut people to open the road to the mining site to allow the delivery of basic supplies including fuel and food.

He said that the road blockade would cause the company to halt its mining operation again because of disruption in the delivery of the supplies particularly fuel. (*)