Residents block road to KPC?s coal mine

Residents have blocked the main road leading to Kaltim Prima Coal (KPC)?s Pit A area in Bangalon district in East Kalimantan after negotiations on the company?s community development program failed to satisfy the local residents? demand.

Local newspaper Kaltim Post reported Wednesday that the local residents grouped in the Bengalon Society Forum had erected a barrier on the main road leading to the Pit A.

The road blockade has stopped the transportation of coal from the mine site to the Lubuk Tutung port.

FMB?s chairman Hartono Kadrie said that the residents were forced to take such an action because the company had showed no serious commitment to accommodate their demand.

KPC has agreed to provide funds worth up to US$1 million or about Rp 9 billion for the company?s corporate social responsibility (CSR) program in the district. But prolonged negotiations on how to channel the funds have failed to fulfill the local residents? demand.

When contacted by Petromindo.com on Wednesday, no officials of KPC are available for comments, while MS Marpaung, a director at the Ministry of Energy and Mineral Resources said, he hasn't yet received any report about the demonstration.

KPC is a unit of IDX-listed mining giant PT Bumi Resources Tbk. KPC is expected to produce 44 million tonnes (MT) of coal this year from 39 MT in 2009. (*)