KEM owes Rp 5.4 billion

KEM owes Rp 5.4 billion

JAKARTA (JP): Gold mining company PT Kelian Equatorial Mining
(KEM) in Kutai regency, East Kalimantan, still has an overdue
debt of Rp 5.4 billion (US$2.26 million) to the local
administration.

East Kalimantan Governor H. M. Ardans said in the province's
capital Samarinda that he had asked the provincial tax office and
mining office to coordinate their efforts to collect the debt
from PT KEM by the end of this month.

KEM's debt included Rp 2.3 billion in mining fee for the
exploitation of 1.37 million cubic meters of andesite stones and
Rp 1.7 billion for building a dam it has promised. In addition,
it has not paid taxes for the use of heavy equipments.

KEM is 90 percent owned by CRA Ltd. of Australia and 10
percent by PT Harita Jayaraya of Indonesia.

KEM's gold exploitation concession covers an area of 700
hectares. (10)