KEM is ready to resume operations
Press release from Rio Tinto Indonesia, 11 May 2000
Thursday, May 11 2000 - 04:00 AM WIB
Yesterday afternoon (10/5) the road that links PT Kelian Equatorial Mining (KEM) and Jelemuq port at Mahakam River was reopened. Logistics are currently underway, preparations are being put in place and within the next two days KEM is estimated to resume normal operations.
As stated in the previous press release (8/5), KEM suspended operations since 29 April due to lack of supplies, including fuel and lime. The suspension has caused non-production of 11 days, which is equal to approximately 380 kgs of gold.
The company and the communities agree to continue the negotiation on land compensation claims.
Rio Tinto Indonesia's President and KEM's President Commissioner Noke Kiroyan said, "We are pleased with the progress on site and we are still committed to resolving the matter by negotiation with the communities."
KEM is 90% owned by Rio Tinto Limited and 10% by PT Harita Jayaraya. The company employs 1050 people of which 70% are from the local area of the KEM mine, and around 3% are expatriates. KEM also employs 500 contractors, the majority of which are from the local area. The Contract of Work was signed on 27 February 1985, production started in 1992, and the mine will be closed in 2004. (*)