KPC workers cancel massive strike plan

Workers of East Kalimantan coal miner PT.Kaltim Prima Coal (KPC) who were threatening to hold massive strike on Thursday had finally dropped the plan and decided to continue negotiation with the company?s management, a company official said.

?Workers? representative had informed the company that they decide to cancel the plan and right now all workers are working normally,? said Nunik Maharani Maulana, KPC spokesperson.

Nunik said the workers are demanding that Rio Tinto and BP Plc., KPC's current shareholders to pay compensation to workers after the companies planned to sell their entire shares in KPC to JSX-listed Bumi Resources.

Nunik said the KPC management had actually agreed in principle to pay compensation, but said talks will be resumed on September 2.

Kaltim Post daily on Thursday reported that around 2700 workers would hold massive strike to enforce their demand.

BP and Rio Tinto decided to sell its entire stakes in KPC after negotiation to divest 51 percent of KPC?s shares to local companies stalled for years.

KPC runs a huge coalmining in Sangatta, East Kalimantan with production target of 18 million tons this year. (alex)