KEM operation still suspended

JAKARTA (JP): The operation of Australian-based mining company Rio Tinto's Indonesian subsidiary, PT Kelian Equatorial Mining (KEM), is still suspended as local residents' protests against the company continue.

The company said in a statement on Tuesday that the locals continued to block the road linking the mine and port of Jelemug on the Mahakam River, halting most of the supplies of critical items, such as fuel and lime.

"Since the suspension began on April 29, KEM has lost production of about 1,400 kilograms," the statement said, adding that the company was still negotiating the claims made by the locals.

KEM, which will end its mining contract by 2004, is still committed to settling the land claim issue, the company said.

Locals have occupied the road since April 18 as the company refused to pay for the compensation of their land used by the mining operator. (hen)