Indonesian Political, Business & Finance News

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the Indonesian government, the Indonesian company PT Nusamba and Freeport McMoRan Copper & Gold, have already withdrawn from the project.

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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)

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