KPC loading operations halted as strike enters 4th day

East Kalimantan coal miner PT. Kaltim Prima Coal (KPC) is still paralyzed as thousands of striking workers continue their action to the fourth day.

?Management is still trying to negotiate with representatives from workers? union,? said KPC?s external relations manager Husein Akma told Petromindo.Com Monday.

Meanwhile, head of alliance of KPC?s workers? unions Badaruddin Wettoeng vowed on Sunday to continue striking until their demands are met by management. ?Workers will continue striking,? he said as quoted by local daily Kaltim Post. Workers had been striking since Friday.

Husein said that the strike caused operations activities to complete halt, including coal loading. He said that 4 vessel bound to Japan were stranded in Tanjung Bara coal port since Sunday as striking workers refused to service the vessels.

Husein said that it was still too early to declare force majeure to KPC?s buyers. ?We might be able to resolve the situation soon,? he said.

KPC workers are demanding that they be given ?goodwill payment? after parent company JSX-listed Bumi Resources seal deal to sell KPC,a long with sister company South Kalimantan coal miner PT.Arutmin Indonesia to a consortium grouped in PT. Borneo Lumbung Energi for US$ 2.3 billion. This ?goodwill payment? is not known in Indonesian labor regulation but KPC workers had made it a habit to receive payment every time company?s ownership changed. Former owner BP PLC and Rio Tinto were also forced to make similar payment when they sold ownership to Bumi several years ago.

The workers held strike in April to push for goodwill payment and eventually the management agreed in principle to bow to workers? demand. The workers and management agreed to negotiate to decide on the amount of compensation paid.

KPC is currently the largest single coal mine in Indonesia, targeting to produce 36 million tonnes this year. The company exports most of its coal production. (godang)