Silo Arrange Labor After Export Prohibition

By Imam Hanafi

Kotabaru , South Kalimantan ( Antaranews ) - Iron ore mining company PT Sebuku Iron Lateritic Ores (SILO) in Kotabaru district began reassembling the core mines labors, as the impact of the enactment of Law No. 4 of 2009 which prohibits raw iron ore export.

"We started to "re-schedule", especially the unloading labor, because there is no more shipments of mine," said Director of Operations of PT SILO Henry Yulianto to Antaranews on Monday.

SILO, Henry told, prefer the core workforce, particularly miners, to remain employed. However, the company have not confirmed the next steps for loading and unloading labor or others, whether to be laid off or remain employed. It is possible that sub-contract labor laid off first, if there is no more mining activity .

Currently PT SILO and subcontracting company employs approximately 2,000 employees. 1,200 of them are employees of PT SILO and about 700-800 people are sub-contract labors.

According to him , PT SILO no longer necessarily exporting pure iron ore mining products. But it already done stage one in which the first stage of purification has been partially separating elements and raise 10 percent of minerals product. " If the iron ore from the mine mouth has 40 to 45 percent content then after the first stage has gone up 10 percent to 44 percent - 50 percent," said Henry.

He hope, central government give solution, after the Law No. 4 of 2009 on Mineral and Coal took effect since January 12, 2014.

Henry explained , PT SILO is targeting an average production of 10 million tons per year , until now it only capable of producing an average of 6-8 million tons per year.