Rio Tinto?s KEM to rearrange activities at project sites

Gold miner PT Kelian Equatorial Mining (KEM), an affiliate of Anglo-Australia?s mining giant Rio Tinto which operates a gold mining project in East Kalimantan, said on Friday it will rearrange the timetables of its mining activities on Saturday following the road blockade carried out by ex-workers of the company.

Rio Tinto spokesperson Nunik Maulana told Petromindo.com on Friday KEM?s mining operation had continued normally since Tuesday when four ex-workers of the firm blockaded the roads leading to its mining sites in the West Kutai regency. They had also hijacked trucks which transported fuel to KEM?s mining sites.

The four men complained that the company management had turned down their demand for an increase in employment termination payment.

Nunik said on Friday the rearrangement of KEM?s project activities was meant for reducing the volumes of fuel used.

Presently, KEM produces 13-14 tons of gold annually, Nunik said.

The firm has planned to close down its operation in West Kutai in 2004 due to resource depletion. (godang)