Lanna Harita agrees to cooperate with cooperatives

Monday, February 5 2001 - 05:00 AM WIB

Coal mining company PT Lanna Harita Indonesia had agreed to cooperate with local cooperatives to extract coal resources around the Giring river in North Samarinda, East Kalimantan, a local official said.

Samarinda mayor Achmad Amins was quoted by local daily Suara Kaltim as saying on Saturday that the agreement paved the way for Lanna Harita to gain green light from the mayoralty to go ahead with its plan to start production at the coal mines.

Lanna Harita, which is owned by Thai, Singapore and Indonesian investors, received the coal contract of work (COW) from the ministry of energy and mineral resources on Feb. 19, 1998 to develop the coalmines around the Giring river.

According to the paper, the company has invested Rp 60 billion (US$=Rp 9,547) for exploration activities and planned to start production soon.

But, the production plan was hampered by the mayoralty's refusal to issue permit unless the company was willing to cooperate with local cooperatives.

"We don't simply place trust in the company. It has to meet requirements set in the cooperation agreement, especially the one obliging the company to protect the existing cooperatives around the river. The company will empower local people by protecting the cooperatives," he said.

The mayor said Lanna's executives had recently held a meeting with the mayoralty's top officials, during which they asked the mayoralty to help it acquire lands for its operations.

He said the mayoralty had formed a land acquisition team, comprising head of the majoralty's land office Mimi Rosmidi Akis, mayoralty secretary Mardiansjah Marhat and head of urban affairs Amin Ismil, to help the company's land acquisition program. (*)

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