Rio Tinto?s KEM scales down operation on ex-workers? blockade
Thursday, January 10 2002 - 10:27 AM WIB
Gold miner PT Kelian Equatorial Mining (KEM), an affiliate of Anglo-Australia?s mining giant Rio Tinto, has been forced to scale down its operation after former workers of the company blockaded the roads leading to its mining sites in the West Kutai regency in East Kalimantan, the company said in a press statement released on Thursday.
The ex-workers had also hijacked fuel tankers in order to prevent transportation of oil to KEM?s mining sites, the company said.
The road blockade started on Jan. 8 after the company management turned down the ex-workers? demand for an increase in employment termination payment.
KEM has planned to close down its operation in West Kutai in 2004 due to resource depletion. (leo)