Sulawesi residents file class action against Inco

A group of villagers in Bungku Tengah village in Morowali regency, Central Sulawesi have filed a class action lawsuit against PT International Nickel Tbk (Inco) for neglecting its concession area in the province, Investor Daily reported Wednesday.

Andi Makkasau, the villagers? lawyer said in Jakarta on Tuesday that representatives of the villagers filed the class action lawsuit at the Central Jakarta district court on Jan. 27. ?The first hearing will be held in March 2011,? he said.

He said that the villagers sued the company because it had neglected its concession area covering over 36,500 hectares in Bahodopi and Kolonedale in the Central Sulawesi province. According to him, the company has been in control of the land for more than 40 years ago, but no meaningful mine operations have been made.

He said that the villagers also sue the government for not doing enough to ensure that the mining rights awarded to Inco were used properly for the benefit of the local economy.

Andi said that the villagers decided to take the case to the court because they felt the nickel mining company only used the land to prop up the company?s asset value. The villagers demanded the land be returned back to the local authority so that it could be used by the local residents to support their farming activities. (*)