Compensation demanded

Compensation demanded

SORONG, Irian Jaya: Residents of Gag island in the South
Waiegeo district in Sorong regency are demanding compensation
from a United States-based nickel mining company.

Zeth Ayal, the regency head of the information office, said
the BHP Island Nickel Project charged the firm had yet to pay
compensation for land affected by the project which belonged to
islanders under customary law. Ayal said a regency team had
visited the village to look into the matter.

Antara reported on Sunday that the team aimed to "clear up"
the problem because the project was expected to yield much profit
for the regency.

Ayal was quoted as saying that locals had yet to understand
the benefit of the project, which was only in its preliminary
survey phase. "It will employ locals once it operates," the
report said.

Ayal said the company had agreed to compensate each land owner
with public facilities worth Rp 5 million.

The BHP project is conducted in cooperation with national firm
PT Aneka Tambang Indonesia.