Sebuku mining resumes activities

Sebuku mining resumes activities

JAKARTA: The Indonesian coal-mining unit of Australia's Straits Resources said on Friday it was able to resume full operations at its site in East Kalimantan Wednesday after agreeing to grant more funds for community development.

More than a hundred people blocked access to PT Bahari Cakrawala Sebuku's mining site from Feb. 16 until Tuesday, demanding the company increase its contributions to community development, Ginarsa Pandinegara, a director with the company, told Dow Jones Newswires.

The company, which is 80 percent-owned by the listed Australian company said it had agreed to grant an additional 800 million rupiah ($1=IDR8,453) for community development in four villages near its mining site in Sebuku island, on top of the Rp 2 billion it spent last year.

The company commenced production in 1997. In 2003, its output totaled 2 million metric tons. -- DJ