Villagers blockage KPC ?s Bengalon project

Coal mining company PT Kaltim Prima Coal (KPC) was forced to suspend activities at its Bengalon coal mine project due to the blockage by villagers demanding land compensation.

Harry Miarsono said the villagers started blockading the project on Monday and were only willing to disperse after local district head stepped in to help settle the matter.

?Things have returned to normal now,? Harry, who is better known as Sony, told Petromindo.Com.

The villagers demanded Rp 100 million (about US$10,900) per hectare in land compensation, which is much higher than the valuation by an independent team, Harry said, adding that the villagers also demanded that they get contracts to do some works for the project.

?They have often staged a similar protest in the past,? he said.

KPC has expected the Bengalon mines to start production in April this year. Coal reserves in the area , which are estimated in excess of 160 million tons, are contained in four pit shells some 25 kilometers north of KPC?s existing operations in Sangatta. The mine is expected to produce 6 million tons of coal annually. (Godang)