Workers in Diamond Mining Sacked

VIVAnews - A diamond mining PT Galuh Cempaka, which is situated in Bandarbaru, South Kalimantan, has stopped working for two weeks. For the time being, it has started sacking hundreds of its workers.

The layoffs has been initiated by early January 2009. However, Gems Diamond, London-based Galuh Cempaka's holding company, is being affected by the global economic crisis.

Galuh Cempaka collapsed after diamond prices in world's market fell by 70 percent. Earlier, diamond prices reached US$330 per carat. Now, it is tagged at US$88 per carat. Therefore, they decided to stop their operation.

"Meanwhile, the company can only maintain the machinery," said Galuh Cempaka President Director Harry Suharsono. He estimated that if the crisis still goes on in the next six months, the company would go into bankruptcy.

Galuh Cempaka, the only modern diamond factory in Indonesia, produces more than 100 thousand carats every year.

The company has provided employment opportunities for local people.

Today, after the mining is halted, the local inhabitants are trying to pan for gold from mining's sewage.

Coverage by: Yedi Yulistiadi (ANTV) | Banjarbaru
Translated by: Bonardo Maulana Wahono