'IMK causes environmental damage'

PALANGKARAYA, Central Kalimantan: Mining firm PT Indo Moro Kencana (IMK) should pay compensation to the local administration for the environmental damage it had caused, the Indonesian Forum for Environment (Walhi) demanded Tuesday.

"PT IMK cannot leave the environmental damage caused by its mining activities in North Barito regency. It must pay compensation to restore it," Walhi's Central Kalimantan branch director Nordin said.

He said the existence of IMK has resulted in various environmental problems, including conflicts with local tribes.

The damage also include the loss of areas belonging to traditional miners, destruction of local ancient places and tribal lands belonging to the Dayaks, he added.

The joint venture company, owned by the Auroro Gold Australia, is also accused of polluting rivers and destroying biological diversity. --Antara