KEM suspends operations
Monday, May 8 2000 - 12:00 PM WIB
PT Kelian Equatorial Mining (KEM), a company 90% owned by Rio Tinto Limited and 10% by PT Harita Jayaraya, had to temporarily suspend its operations on Saturday 29 April due to lack of supplies, including fuel and lime. The supplies were hampered by road-blocks on the road that links KEM to the Mahakam River.
KEM and the communities have been in negotiation about a number of issues, including land compensation. Currently there are some unresolved points that have caused some people to get impatient to the extent that they have blocked the roads near to KEM's operating site.
Both KEM and the local communities are still committed to continue negotiations.
Rio Tinto Indonesia's President and KEM's President Commissioner Noke Kiroyan said, "We are concerned about what is happening with our operation and are endeavouring to resolve the matter by negotiation with the communities."
KEM is committed to resume operations as soon as the road-blocks are lifted enabling the logistic supply returns to normal. (*)