Addressing Community Issues

As part of our ongoing commitment to the people of Indonesia and to the practice of good corporate citizenship, PT Inco endeavours to respond to and resolve issues related to our operations.

Working with Sorowako Residents to Develop New Community

Currently, we are working with residents in the village of Sorowako in the Province of Central Sulawesi to develop a new residential area for relocated families.

When the initial PT Inco plant was being constructed in the area in the early 1970s, an agreement was reached between Inco and the Indonesian government regarding the relocation and compensation of a group of local residents. At that time, PT Inco paid in full the compensation established by the government. Subsequently, a number of families claimed they had never received payment.

In spite of the fact that PT Inco fulfilled our obligation, the company contacted and began to discuss alternative arrangements with a people’s committee representing the claimants.

The issue has now been resolved through mutual cooperation. “In partnership with local residents and with the approval of local government, we are assisting the community to develop a new residential area at Sumasang,” says Ciho Bangun, Vice-President, Operations, at PT Inco. “Indeed, representatives from PT Inco were on hand at the official ceremony that celebrated the beginning of construction at the Sumasang project in the fall of 2003." There will be 250 families at the Sumasang project.

Committed to Resolving Transmigration Relocation Issue

PT Inco is also working to resolve a relocation issue involving transmigrants. Under the Government of Indonesia's transmigration program, approximately 700 families were relocated to lands within our Contract of Work area in the Province of Central Sulawesi during 1991 and 1992. "The relocation took place without prior consultation or coordination with PT Inco or the Ministry of Energy and Mineral Resources," says Jim Gowans, Senior Vice-President and Chief Operating Officer, PT Inco. "Since that time, the government has announced that it does not have the funds to arrive at a satisfactory solution. However, PT Inco, which considers the area a future resource (although we have no short-term plans to develop the area), is committed to resolving the transmigration issue in a fair and timely manner."