CASE STUDY: SITE OCCUPATION, GOLD MINE, KALIMANTAN, INDONESIA
- Civil disorder in regional areas due to evolution from authoritarian Central Government to fully fledged democratic elections and incoming popularly elected Administration.
- Regional autonomy creates crisis of expectation and demand for increased local community benefits from mining operations countrywide.
- Large Australian goldmining operation disrupted by illegal mining activities, invasion of Contract of Works, and threats to expatriate and local workforce.
- Police unwilling to intervene, some elements of security forces sympathetic to local community claims.
- Increasing risk to operations, assets and staff.
RISK AND IMPACT
- Cessation of all mining activities through ongoing protests, blockades of access routes and further direct action. Risk of complete cessation of operations through force majeure clause
- Theft of gold ore, unsafe illegal mining activities, environmental damage through unsafe procedures (mercury contamination)
- Poor liaison between local communities and regional security organs
- Lack of political will to support foreign operations
- Significant interruptions of mining operations costing millions of dollars in lost production, leading to investor concern and a diminishing share price.
- Implementation of Training Management System and additional security force development
- Development of improved communications with local communities outlining strategic corporate planning leading to increased social and educational opportunities through increased revenue flows into the communities.
- Mining operations continue, regional Governor instructs Police to implement direct action to remove all non-local illegal miners from the project site.