KEM workers return to work

Some 700 workers of gold mining firm PT Kelian Equatorial Mining (KEM) in East Kalimantan province has returned to work after one week of protest demanding a better compensation pay once the company started its gradual employee reduction program to anticipate the termination of its operation by 2004.

KEM administration manager Mochamad Nispalah said that the workers "understand" the management explanation.

Representatives of the protesting workers met with KEM to officials including directors John Vale and JS Andersen.

Meanwhile, police remained guarding the KEM facility despite agreement reached between the management and the workers. There are still fears that provocateurs might intimidate the workers to take extreme actions.

KEM is expected to end its operation in the province in 2004 as the gold reserves deplete. (*)