KEM, villagers reach agreement over land compensation

Gold mining company PT Kelian Equatorial Mining (KEM) has finally reached agreement with a group of protesting villagers in the West Kutai Regency, East Kalimantan, over land compensation problem.

The local Kaltim Post daily reported that the ?peace loving? group agreed to KEM?s offer of Rp 60 billion (US$1=Rp 8,550) compensation, while the LKMTL NGO which represents another group of villagers said that it would have to study first the proposal for a week before making decision.

The agreement was reached during a meeting facilitated by the regency legislative council which, ran till late Tuesday evening.

Villagers had demanded compensation for land acquired by the gold mining company. (*)