Thiess says 80 percent of Arutmin employees support partnership project

Coal mining firm PT Thiess Contractor Indonesia said that some 80 percent of the employees of coal mining firm PT Arutmin Indonesia supported the new partnership of the two companies to develop a US$480 million coal mining project in the South Kalimantan province.

Thiess support facilities manager Ade Prawoto was quoted as saying by the East Kalimantan Kaltim Post that at least 1,200 of Arutmin's 1,500 employees had joined Thiess to develop the coal project.

"Around 80 percent (of the employees) have joined in. This means that only 20 percent who feels disturbed," he said.

Ade was responding to news reports that many of Arutmin's employees had opposed to the partnership project because most of them would be transferred to Thiess without first receiving any severance payment from Arutmin. The protesters said that this was an unfair business practice.

But Ade said that the anxiety among Arutmin's employees basically might have stemmed from the more discipline environment practiced at Thiess.

The partnership project will develop a coal mining sit at the Senakin and Satui areas in South Kalimantan. The coal 5-year project is expected to produce 9.5 million tons of coal per year.

Thiess Indonesia is 99 percent owned by Australia-based Thiess Contractors Pty. Ltd, while Arutmin Indonesia is 80 percent owned by Australia's BHP mining group and 20 percent by Indonesia's Bakrie Group.(*)