KPC to allocate $4 million for community development over next two years

KPC will provide additional funding for local community development of around $2m each year for the next two years, a statement from company said on Wednesday.

This proposal has been developed through a series of discussions over the past year with local community leaders from Sangatta where KPC?s coal mining operations are based.

Accordingly Rio Tinto and BP will contribute 3% of the dividends they receive from KPC operations over 2001 and 2002 (around $2m each year) to the Yayasan for Community Development Programs. This funding will be additional to KPC?s existing Community Development funding of around $1.5m annually.

?This is an important step forward in KPC?s relationship with the local community. It will allow KPC to contribute even more toward the development and welfare of the East Kutai people particularly. The involvement of local community leaders and senior government officials is an especially significant step,? President Director of KPC, Noke Kiroyan said. (*)