KEM in critical condition
Monday, May 8 2000 - 03:00 AM WIB
The largest gold mining operation in East Kalimantan PT Kelian Equatorial Mining (KEM) is now in a condition as villagers have blockaded the road toward the mining site in Longiram sub district, Kutai regency, since April 9, 2000.
KEM public relations officer Kasan Mulyono confirmed the critical condition.
Kasan was quoted by the Kompas daily as saying that in the next 2-3 days all mining activities would be stopped, and 1,500 employees would be returned home.
Kasan said that the road blockade had prevented the supply of fuel, food, and other basic materials for mining operation.
He said the company was now discussing ways on how to evacuate the employees if the company was really going to be closed down.
The villagers made the road blockade as a protest demanding the company to immediately pay the compensation for their land acquired by KEM.
Kasan said that KEM was committed to pay the compensation and would be willingly to cooperate with other parties including non-governmental organizations (NGOs), which had been accompanying the villagers.
KEM is 90 percent owned by Rio Tinto Ltd., and 10 percent by PT Harita Jayaraya. The company has the license to mine until 2004. (*)