Protesting villagers force Adaro to halt coal production
Friday, February 27 2004 - 12:36 AM WIB
?Production had stopped from Tuesday after locals from Ku?u island and Tamiyang villages blocked hauling road,? said Adaro?s administration manager Priyadi.
Priyadi said the blockade is still on going and had cost the company some 200,000 tons in production opportunity loss. He said Adaro had notified buyers about the situation, but said thus far coal shipment is unaffected as the company still had 150,000 tons of coal in its stock pile.
He, however, did not rule out the possibility of force majeur declaration should the blockade prolonged.
Priyadi said villagers accused Adaro?s operations had caused flooding in the surrouding villages and demanded Adaro to compensate the villagers Rp. 1.2 billion (US$ = Rp. 8,400. Priyadi said Adaro declined to compensate the villagers, as flooding is an annual event in the area and had nothing to do with Adaro?s operations. Adaro, said Priyadi, offered to donate the villagers Rp. 150 million.
Priyadi said negotiation with villagers is on going with the help of local government and police. He also said Aadaro had reported the case to the Ministry of Energy and Mineral Resources.
The blockade came only a few days after villagers blockaded Straits? Resources Sebuku coal mine in Sebuku island, also in South Kalimantan, accusing Sebuku mine operations caused environmental damages and asking for compensation money. The blockade ended after Sebuku mine operator agreed to fulfill some of villagers? demands.(Godang)