KEM suffers some Rp 23b in financial loss due to road blockade
Friday, May 19 2000 - 04:00 AM WIB
Giant gold mining firm in East Kalimantan PT Kelian Equatorial Mining (KEM) suffered some Rp 23.4 billion (Rp 8,400 = US$1) in financial loss due to the halt in production from April 29 to May 10, according to company spokesman Kasan Mulyono.
Kasan was quoted by the local Kaltim Post daily as saying that the company produced 30 kilogram of gold per day with local market price of around Rp 71,000 per kg.
Villagers blockaded four roads in the Kebut, Linggang Bigung, Tutun and Melapeh Baru villages into the KEM mining site in a protest to demand a compensation for their land acquired by the company.
The blockade has caused the company to be unable to deliver basic supplies including fuel and lime.
But the company and the local people had reached agreement on Wednesday over land compensation. The two sides were now proceeding to negotiate over the compensation for the housing construction located on the land acquired by the company.
Kasan said that in addition to the financial loss, the road blockade had also caused environmental loss because of the difficulties in obtaining lime which was crucial to neutralize waste product of the mining operation. (*)