KEM proposes profit-sharing option to villagers
Friday, May 12 2000 - 04:20 AM WIB
Gold mining company PT Kelian Equatorial Mining (KEM) has proposed a profit-sharing option to the villagers living around its gold mine in Long Iram district, West Kutai regency, East Kalimantan to settle their land dispute.
Kompas daily reported the option was proposed after the villagers of KEM's team of negotiators led by Jan Andersen failed to reach an agreement on the land price in their negotiation at KEM's office on Thursday.
KEM set the price at Rp 4,250 (US$1= Rp 8,295) per square meter for the villagers' land, but the villagers valued their land at between Rp 19,000 and Rp 40,000 per square meter.
In comparison, the local authorities set the price at Rp 1,717 per square meter for the land, which was equipped with ownership documents and Rp 480 per square meter for the land without ownership document.
KEM's communication officer Kasan Mulyono said under the profit-sharing option, the company would distribute a portion of its annual revenue to the villagers from this year to until the company closed its mine in 2005.
The option was expected to build a good relationship between the company and the villagers, Kaltim Post as saying quoted Kasan.
However, Kasan said, the villagers had not yet well understood the option during the six-hour negotiation witnessed by the local governmental officials.
Both parties agreed to continue negotiations Friday (today).
It remained unclear whether KEM, which had been operating a gold mine in the area for years, had not paid any compensation to the villagers or it had paid compensation but the villagers demanded additional compensation.
The villagers blocked the access road to the gold mine for weeks, making KEM unable to get logistical supplies and halt production on April 29.
The villagers however agreed to end the blockade on Wednesday, enabling the company to get new logistical supplies.
Kasan said the company hoped to resume operation on Saturday or Monday at the latest.
Due to the blockade and suspension, the company said it lost the potential output of 380 kilograms of gold.
KEM is 90 percent owned by Anglo-Australian firm Rio Tinto, 10 percent by local company Harita Jayaraya. (*)