KEM vows to settle land dispute
Tuesday, May 9 2000 - 02:00 AM WIB
Gold mining company PT Kelian Equatorial Mining (KEM) vows to settle its land dispute with villagers near its mining site in East Kalimantan province.
KEM spokesman Anang R. Noor said that the company was still in the process of negotiation to pay the land compensation.
But Anang was quoted as saying by the Neraca daily that KEM was facing difficulties to realize the compensation demand particularly because the land price demanded was too high, and too many claims even existing the total area of KEM mining site.
Anang said that the people demanded an Rp 100,000 per square meter, which is much too high for the area.
He also said that there were now around 6,000 claims over the disputed land.
He said that the company had previously paid the compensation, but it turned out that there still remaining unpaid claims including duplicate claims.
Anang admitted that the company's 1,285 ha mining area overlapped with land owned by the villagers and the government. But the 6,000 claims would translate into a land area greater than 1,285 ha.
He said that the claims were currently being verified by the local administration, adding that almost all claims had been verified.
KEM temporarily had to shut down its operation on April 29 after the company could not obtain supply of fuel and camphor, both used for the mining operation, because the villagers had closed the road toward the mining site since April 18.
KEM is 90 percent owned by Australia's mining firm Rio Tinto, and 10 percent by PT Harita Jayara.
Anang was confident the company could resolve the land dispute, and enable it to complete its mining contract until 2004. (*)