KPC production resumes to normal: official

Giant coal mining company PT Kaltim Prima Coal (KPC) said that its production had resumed to normal level of around 50,000 tons since Thursday after employees of one of its contractors end their protest and local farmers in Sangatta, East Kalimantan, also stopped blockading access road.

"Production has returned to normal level of around 50,000 tons per day since yesterday," KPC external relations manager Bambang Susanto told Petromindo.com.

KPC's production had dropped to around 35,000 tons per day previously due to the two incidents.

Bambang said that problems with the Sangatta farmers had been settled via the mediation of the local East Kalimantan administration. The farmers had earlier blockaded the company's mining site to demand greater compensation for land acquired by the company.

Bambang added that labor dispute at PT Liebher, one of KPC contractor, was no longer a problem to the coal mining operation.(Godang)