Two Bre-X executives held by employees

Two Bre-X executives held by employees

JAKARTA (JP): Hundreds of employees at the Busang I camp in
East Kalimantan reportedly held members of Bre-X management
Sunday, following the freezing of all company activities, Antara
reported yesterday.

Bre-X's head of administration and personnel, Idris, and a
surveyor, Agus Tripadi, have reportedly been held by workers
following a proposed layoff.

Local military commander, Aji Suryanata Kesuma, said Monday he
had yet to receive such information.

However, he acknowledged that about 400 Bre-X workers in Muara
Ancalong have been anxious about their fate, which Bre-X's main
office in Canada will decide in mid-May.

"It is unlikely that they're being held as captives. It's only
because they want the company to fulfill its obligations to
workers who'll be laid off," Kesuma said.

National Police Spokesman Brig. Gen. Nurfaizi told The Jakarta
Post yesterday here that he had not yet received any reports
about the case.

Idris said Saturday that Bre-X had halted most of its
activities but was ready to fulfill all its obligations to its
employees.

A source said workers' compensation could total Rp 1.5 billion
(US$652,173).

Bre-X Mineral's Busang mine, which was said to be the gold
find of the century, was found to have an insignificant amount of
gold by an independent council earlier this month.

Indonesian Minister of Mines and Energy I.B. Sudjana said the
government was freezing all operations of Bre-X and its
subsidiaries in the country.

He also said the government had ordered a police investigation
into the great disparity between the findings of Bre-X and that
of Strathcona Mineral Service Ltd of Canada, which conducted the
independent assessment of the Busang mine.

Bre-X's partners, the Indonesian government, the Indonesian
company PT Nusamba and Freeport McMoRan Copper & Gold, have
already withdrawn from the project.

Demo

Meanwhile, a group of students and youths from four
universities called for Minister Sudjana to resign, due to his
failure in detecting the recent mining fraud.

"Minister of Mines and Energy I.B. Sudjana must show
responsibility for the case by stepping down from his position
and the police should investigate all the officials involved in
it," read Moh. Naufal, the leader of 14 youths, in a statement in
front of Sudjana's office in Central Jakarta.

Naufal said the youths represented an organization called the
Indonesian Student and Youth Committee.

The youths' statement echoed a suggestion by Amien Rais,
chairman of the 28 million strong organization Muhammadiyah, that
Sudjana resign from his post after the discovery of fraud at the
Busang mine, the biggest mining hoax in world history.

Naufal said yesterday that the case had tarnished the image of
Indonesia and that it was the biggest example of corruption and
collusion in mining history, which involved government officials
helped by foreign parties.

"Sudjana should be held responsible, because he is the leader
and he shouldn't pass the buck on to his staff," he said.

Sudjana said last week he knew there were groups who wanted
him to resign. "It's up to the President, because I'm only his
aide," he said.

Probosutedjo, President Soeharto's half-brother and noted
businessman, commented recently that high-ranking officials would
be unwilling to resign for their mistakes. (13)