Thousands of Arutmin employees restless over new mining deal

Thousands of employees of coal mining company PT Arutmin are now restless following the company's agreement with another mining firm PT Thiess to cooperate in a coal-mining project in the Samakin and Satau areas in South Kalimantan province.

The five-year project would translate into a massive layoff in Arutmin's employees because Thiess would be the one to develop the coal project, which is estimated to produce 9.5 million tons of coal per year.

The Balikpapan-based Kaltim Post daily reported that Arutmin's management was in an intensive meeting to seek ways to cut the number of employees and provide them with sufficient compensation.

Arutmin has more than 1,300 employees. Kaltim Post said that the layoff would particularly be concentrated in the maintenance and mining divisions. (*)