KPC resumes operations at Pit J

East Kalimantan miner PT. Kaltim Prima Coal (KPC) said on Monday that operations had resumed in its Pit J coal mine on Saturday after the villagers, who had been occupying the mine since Tuesday, agreed to disperse.

KPC?s External Relations manager Husein Akma told Petromindo.Com that KPC?s contractor Thiess was allowed to resume operations but was temporarily prohibited from conducting blasting activities.

Hundreds of villagers on Tuesday stormed Pit J, demanding compensation payment of US$6,000 for each of 560 houses house they claimed damaged by KPC?s blasting operations. The occupation caused operation halt at Pit J, which is slated to produce 5 million tones of coal this year.

KPC, which runs one of Indonesia?s largest mining operations, had been hit by a series of demonstrations lately. Hundreds of employees of the company?s flight, heavy equipments and food contractors are currently on strike, causing disturbance to the company?s operations.

KPC is a subsidiary of JSX-listed firm PT. Bumi Resources. KPC plans to produce 36 million tons of coal this year. (godang)