The Indonesian coal miner, jointly owned by Rio Tinto and BP Amoco, has been hit by industrial strife since mid-June as workers demand higher wages and land compensation.
“Mining, crushing and conveying are in process and are building up to full production levels,” a Rio Tinto spokesman said
“We will replete stock piles at the port and lift force majeure once they are high enough.”
Kaltim Prima was forced to declare force majeure in June and again in August when workers blockaded the operation, Indonesia’s largest coal mine. Rio and BP claimed last week to have lost 1.85 million tonnes in production worth $50 million.
The dispute has also affected the company’s nearby Kelian gold mine. Rio has agreed to compensate land owners affected by the mine, where a roadblock has stifled output for more than a month.
Rio Tinto’s 50% share in Kaltim Prima was its fourth largest contributor to profits in 1999, contributing net earnings of US$26 million.
