KEM reaches agreement with villagers over land compensation

The giant gold mining company in East Kalimantan PT Kelian Equatorial Mining (KEM) had reached agreement with the local protesting villagers over land compensation dispute, according to director general of mining Surna T. Djajadiningrat.

But Surna said that the two sides had yet to reach agreement over the compensation for the house construction.

KEM agrees to pay various compensation rates for the people's land acquired by the company. The compensation varies from Rp 900,000-Rp 1.5 million per claim, and from Rp 3,000 per square meter to Rp 5,000 per sqm.

The local villagers had blockaded the road into the company's mining site in a protest over unpaid land compensation. The blockade has caused KEM to be unable to get fuel supply and other basic necessities, causing the company's operation to be temporarily shut down.

The dispute has become a high profile one and was included at the recent cabinet meeting.

Meanwhile, the Kaltim Post daily reported that the people had allowed KEM to pass through the road to deliver supplies after the two sides reached agreement over the land compensation on Wednesday.

But the paper said that only one truck of fuel and one truck of lime supply were allowed to pass through each day.

KEM is 90 percent owned by the Rio Tinto gold giant group. (*)