KPC's output down on mining site blockade
Friday, March 9 2001 - 04:30 AM WIB
Around 300 youths of the Bengalon area in Sangatta, East Kalimantan, has blockaded part of the mining site of coal mining giant PT Kaltim Prima Coal (KPC) demanding for land compensation.
The company's government and external relations director Bambang Susanto said the blockade had caused KPC production at Bintang pit and K Pit to drop by 40 percent to around 30,000 tonnes per day from normal level of 50,000 tons.
KPC is equally owned by Anglo-Australian giant miner Rio Tinto and British energy giant Beyond Petroleum (BP)
KPC is the Indonesia's second largest coal producer with the output of 15 million tonnes per annum.
Acting KPC president Tierry Brunner said that KPC would not pay the land compensation demand of the Bengalon youths because the company had already paid the compensation to a group of 58 villagers on January 30, 2001 following a negotiation mediated by the local East Kutai administration and parliament.
Kaltim Post said that KPC paid around Rp 7 billion (US$1=Rp 9,900) for the compensation of some 7,273 Ha of land.
The paper said that the youth group demanded similar compensation for 3,200 Ha land.
Several months ago, KPC had to stop production following the labor massive strike organized by the high profile SBSI labor union.
Bambang Susanto urged the provincial government and security apparatus to act swiftly to solve the problem.
"The blockade will seriously affect our process of production and our commitment to buyers;" he told Petromindo.com through phone interview. (godang)