Jakarta. Gold miner Masmindo Dwi Area (MDA) recently responded to claims that the company had violated the rights of other landowners in Latimojong, Luwu, South Sulawesi after a video of its workers cutting down local residents’ trees in the said area surfaced on social media.

According to MDA, the land in question is a legal concession that belongs to the company based on the contract that the government had issued. MDA said the company had the right to use the land for mining operations as the rightful owner.

“Regarding the locals’ claims over some plots of land, the problem has been resolved through a release of rights with fair and reasonable compensation. All processes are in line with the existing regulations, including the mediation process involving the village and regency-level governments,” MDA wrote in its press statement.

Since 2022, MDA has made several efforts to resolve the issue, including explaining the proposed compensation and conducting price assessments. The company has negotiated with the certified land owners and cultivators. In 2023, MDA also held a public forum to explain its operational production plans.  MDA also continued to have negotiations related to land compensation that year involving the village and regency-level governments, but talks saw a deadlock.

MDA alongside the public assessment services office KJPP RAB held a market price assessment of the land. MDA again held another mediation earlier this year, although the talks did not bear fruits, the company wrote in its press statement. The Luwu Investment Acceleration Task Force had also summoned the cultivators and landowners several times, but the talks hit a deadlock once again.

MDA then sent three notification letters to the remaining landowners. About 300 hectares of the total 1,100 hectares of land had been cleared. MDA has offered compensation higher than the value stated in the assessment, reaching no more than Rp 700 million per hectare.

“This is a very high value for land in the highlands such as Latimojong District, even the highest in Sulawesi according to the Celebes Research Center,” MDA said.

The company has deposited the compensation funds at the Belopa branch of Bank Mandiri. MDA also cited differences in prices as one of the obstacles in the negotiations. The deadlock also put a delay in the miner’s production plan for years, while operational costs continued to run. The company feared that the delay could prompt them to reduce the number of their employees.

“[This postponement] will also delay the potential income that the government would have received, as well as the economic benefits that the Luwu local communities would have been able to enjoy should MDA proceed with its government-approved work plan,” the press release reads.

MDA claimed that it would remain committed to its commitment to residents in 4 sub-districts and 21 villages in Luwu who have supported this project. The company said that they were aware of how the local community was “looking forward to the immediate operation of the gold mine” as it could spur job opportunities, the local economy, and expedite the infrastructure development.  

MDA is planning to conduct further investigations and comprehensive evaluations while ensuring that all land-clearing activities are only carried out on land that has been agreed upon. 

"We understand that every process of change always involves challenges. The MDA management strives to ensure that all parties receive fair and equal rights in accordance with applicable laws. We always maintain open and constructive communication with all stakeholders, including the surrounding community, to ensure that this project runs well and provides benefits to all parties involved," Diana Yultiara Djafar, the head of corporate communications at MDA, said.