Residents demand compensation from Aurora's Indo Muro Kencana

Residents of Luit Raya, Barito Utara regency, Central Kalimantan have demanded PT Indo Muro Kencana to pay compensation for the land it acquired for its gold mining activities in 1987, Banjarmasin Post reported on Wednesday.

Herly S Penyang, who represented the residents, said Indo Muro, a wholly owned subsidiary of Australian Aurora Gold, had no choice but to pay the compensation which had been delayed for years.

He acknowledged that the company had several years ago settled the compensation payment. ?But the money was given to residents of other villages,? he said. He added that if the company could not pay the compensation in full, the Luit residents would understand as long as they received part of the compensation payment.

Herly said that the residents would take the case to the court, if the company still refused to pay the compensation.

Indo Muro, which operates a gold mining in Barito Utara in the province, is scheduled to close its mining operation next year due to reserve depletion.

An official of Indo Muro said that the compensation had been settled a long time ago. ?If the Luit residents want to take the case to the court, it does not matter,? he said. (*)