KPC sees delay in Bengalon mine production

East Kalimantan coal miner PT. Kaltim prima Coal (KPC) said development of its new Bangalon mine is facing delay due to land compensation problems.

?We?ve faced land compensation problems with local villagers, which make us unable to commence production from the mine this month as planned,? said KPC superintendent public affairs Rurie Wuryandari.

Another official at KPC mining site complained that a group of villagers are asking for unreasonable price. ?We are now approaching the villagers to accept compensation,? said Hari Miarso, KPC General Manager External Relations and Sustainable Development.

He admitted that the problem would affect KPC?s production target of 25 million tons this year. KPC originally plan to commence production from Bengalon mine at the rate of 1.25 million tons for the remainder of the year and 6 million tons in 2005.(godang)