Strait?s Sebuku coal mine blockaded, production halted

Hundreds of villagers, backed by non-governmental organizations (NGO) had been blockading Straits Resources? Sebuku coal mine on Sebuku island, South Kalimantan since Monday, causing the mine to stop production, Banjarmasin Post reported Wednesday.

According to the daily the protesting villagers demanded operator PT. Bahari Cakrawala Sebuku (BCS) to cease mining operations on the island over environmental concern and fear that mining activities can sink the northern part of the island.

Local police chief contacted by the daily said that both company and protesters were still negotiating, adding that hundreds of police personnel had been deployed to the minesite.

NGOs that sponsored the blockade said BCS had been involved in significant environmental destruction that caused losses to the villagers.

Another report said the villagers demanded that BCS be responsible for damages caused by the mine?s operations and pay the villagers Rp 1000 (US$12 cents) per ton of production.

Straits, which is listed in The Australian Stock Exchange has 80 percent stake in BCS. Sebuku mine produces some 5,000 tons of coal daily. (*)