Kimco asked to halt mining operation in forest areas

Industrial forest developer PT Sumalindo Hutani Jaya(SHJ) has strongly warned coal mining company Kimco Armindo to stop mining activities in its industrial forest in East Kalimantan, Kaltim Post reported on Saturday.

SHJ's legal consultant Effendi Mangunsong said that the coal mining company had illegally used his client's industrial forests located in Sebulu district, Kutai Kartanegara regency for road construction and mining activities.

"We therefore asked the company to stop its activities pending the legal proceedings of the dispute," he said.

Kimco has claimed that its concession rights also include part of the industrial forest area owned by PT SHJ. The mining company also refused the charge that it had trespassed the company's property, except for the road used by the company to transport its coal.(*)