Villagers threaten to close Gunung Bayan Pratama Coal

The villagers of Mancong, Jempang district, West Kutai, East Kalimantan have threatened to forcibly close the operation of coal mining company PT Gunung Bayan Pratama Coal unless the company meets their demands, local daily Kaltim Post reported Monday.

The paper said the West Kutai regency administration formed two teams to mediate between the villagers and the company.

The teams have held meetings with both parties to end their dispute but they failed to reach a solution until Sunday evening, the paper said.

V Tingang B, an assistant to the regent, who heads one of the mediation team, the villagers consist of two groups, that is the local tribal community and the local people who work at the company.

The tribal community demanded that the company pay Rp 40,000 (US$=Rp 10,465) per person plus 30 percent share in the company?s production in compensation for their damaged land.

Meanwhile, the local workers voiced 15 demands, including that the company prioritize the local workers and improve the welfare of its workers.

The villagers demand the company to meet their demands, otherwise they will forcibly close down the mining operation. But, they gave no deadline.

A company manager said thus far the company operates normally.

Gunung Bayan is owned by PT Kaltim Bara Sentosa (60 percent) and businessmen Low Tuck Kwon (30 percent) and Engki Wibowo (10 percent). (*)