KEM still suspends operations

Jakarta -- PT Kelian Equatorial Mining (KEM) are still suspended due to the continuing blockade by the community of access road that link the mine and port of Jelemuq on the Mahakam River. The blockade has stopped supplies of critical items such as fuel and lime.

Since the suspension began on 29 April, KEM has lost production of about 1400 kgs of gold.

KEM and the community are still discussing claim data for the negotiation of land compensation claims.

KEM are still committed to settling the land claim issue and to the process of closing its mine by 2004.

For more information, please contact:

Rio Tinto Indonesia: Nunik Maulana / Anang Noor

Phone : 021 - 527 4208 ext 111/113

Fax : 021 - 527 4228

Mobile : 0811 832067 / 0816 191 7719