KEM operation still suspended

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)