Villagers occupation halts KPC mining ops in Pit J

Hundreds of villagers occupied a mine operated by East Kalimantan coal giant PT. Kaltim Prima Coal (KPC) since late Monday, demanding compensation for damages caused by the company?s blasting operations.

The occupation caused mining operation to be halted at KPC?s Pit J mine since Tuesday.

KPC?s External Relations Manager Husein Akma told Petromindo.Com that the villagers are demanding compensation payment of US$6,000 for each house they claimed damaged by KPC?s blasting operations. Husein said the villagers claimed 560 houses were damaged.

Operations in KPC?s other mining areas were unaffected, said Sonny Miarso, another KPC senior official contacted by Petromindo. Pit J is expected to produce 5 million tons of coal for this year, Sonny said. KPC, a subsidiary of JSX-listed mining firm PT. Bumi Resources, plans to produce 36 million tones of coal for this year.

Husein said KPC and the villagers are currently negotiating over the compensation payment, said Husein.

Blasting operations in Pit J is carried out by contractor PT. Thiess Contractor Indonesia. (godang)