KEM closes mining in Kutai Barat in 2004

Gold miner PT Kelian Equatorial Mining (KEM) will close its mining operation in Sungai Kelian, Kutai Barat district, East Kalimantan.

And the company is involving all related parties, including local people, its contractors, universities, non-government organizations, local administrations and the World Bank to find ways of how to maintain economic and social activities in the area after the mining is closed in 2004.

KEM president John Vale told a hearing with representatives of all related institutions in Kelian on Wednesday that KEM had been making preparation for the closure of the mining operation. For that purpose, it established a new department tasked in preparing the closure of the mining operation.

KEM, 90 percent controlled by mining giant Rio Tinto of Australia and 10 percent by PT Harita Jayaraya, is the first mining interest in Indonesia that has been making preparation for the closure of its mining operation.

Part of KEM's preparatory works include surveying around 140 villages around the mining sites, whose lives depend on the mining operation. Besides, the company had also surveyed around 500 contractors and also its own employees totaling 1,000 people.

KEM, which has been in operational in 1992 with production capacity of 14 tons of gold ore, will close its pit mining activities in 2003, and gold ore processing by 2004.

East Kalimantan governor H Suwarna AF, who attended the hearing, asked PT KEM to hand over all assets to local administrations, including roads, electricity, telecommunications and clean water facilities.

And the speaker of East Kalimantan legislative body, Sukardi Jarwo Putro, asked KEM to remain responsible for the environmental impacts management of its mining sites, including after the closure of its mining operation.

The hearing was also attended by Kutai Barat regent Rama A. Asia, Tanjungpura (East Kalimantan) military chief May. Gen. Djoko Besariman, and East Kalimantan Police chief Brig. Gen. Bachrumsyah Kasman. (*)