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.