KEM, trade union sign agreement in anticipation of mine closure

The management of East Kalimantan-based gold miner PT Kelian Equatorial Mining (KEM) and leaders of its trade union Wednesday signed an agreement to ensure that workers? rights will be honored when the company closes its goldmine at the end of 2004.

The agreement signing ceremony took place in Jakarta in the presence of Minister of Manpower and Transmigration Jacob Nuwawea.

The so-called Joint Labor Agreement (PKB) stipulates several key matters including payment for workers and training courses for preparing them to find new jobs after KEM?s gold mine is closed, KEM?s trade union leader Robert Gamdalu told Petromindo.Com.

Meanwhile, KEM?s human resources manager M. Dispala said that his company refused to give separation pay to contract workers.

Dispala said KEM currently has about 900 permanent workers.

The company, 90 percent owned by world mining giant Rio Tinto, will stop gold production at the end of 2004 as gold reserves in its contract area in West Kutai are exhausted.

The company produced 16.8 tons of gold and 10.8 tons of silver last year. (godang)