Aurora committed to Indonesian mine<\/p>\n
CANBERRA (Dow Jones): Australian-based gold miner Aurora Gold
\nLtd. is committed to its Mount Muro project in central
\nKalimantan, Indonesia, but still wants to sell its suspended Toka
\nTindung operation in northern Sulawesi, Chief Executive Alan
\nScott said Tuesday.<\/p>\n
Indeed, Aurora, which is 35 percent-owned by global mining
\ngiant Rio Tinto PLC, is evaluating and clarifying details of
\noffers for Toka Tindung, he said.<\/p>\n
\"I don't think it will be a long time before we've actually
\ngot something to announce there,\" he told Dow Jones Newswires in
\nan interview.<\/p>\n
Rio Tinto acquired its stake in Aurora following its
\nacquisition of Australia's Ashton Mining Ltd. in 2000.<\/p>\n
Aurora put its 85 percent-owned Toka Tindung gold project on
\ncare and maintenance in September 1999, when in a major period of
\nunrest in Indonesia, the satellite Talawaan operation was overrun
\nby thousands of illegal miners.<\/p>\n
It announced early in 2001 it wanted to sell the project,
\nwhich has been written off completely in the company accounts, to
\nstem the \"cash bleed\" and to focus on other interests.<\/p>\n
Scott believes a sale of Aurora's interest in Toka is
\npossible, despite the illegal miners remaining at Talawaan and a
\nlack of action by authorities to resolve the problem.<\/p>\n
That is because Talawaan is isolated geographically from the
\nmain Toka mine site, and because Toka needs to be mechanically
\nmined.<\/p>\n
\"It's those two combinations that give us a possibility\" to
\nsell, he said, while admitting any sale will be difficult.<\/p>\n
\"The viability of an operation at Toka isn't affected by the
\nloss of Talawaan,\" he said.<\/p>\n
The company is seeking a buyer as soon as possible that is
\nprepared to explore the area further and provide Aurora with an
\nincome if and when mining is resumed, he said.<\/p>\n
Scott agreed an Indonesian company will have more leverage
\nover authorities to resume operations.<\/p>\n
Aurora was hard hit as lawlessness hit many parts of Indonesia
\nin recent years. It posted a A$93.9 million loss in fiscal 1999,
\nwith most of this coming from a full 100 percent or A$67 million
\nwritedown of its Toka Tindung assets.<\/p>\n
The company also wrote off A$30 million from the value of its
\nMt. Muro operations in Kalimantan in 1999, but remains committed
\nto the project.<\/p>\n
Mt. Muro gold equivalent output jumped 13 percent to 253,250
\nounces in 2000 from 224,085 ounces in 1999.<\/p>\n
This lift in production occurred despite serious constraints
\nby illegal mining in the first half of calendar 2000, which
\ncorresponds to its fiscal year, the company said.<\/p>\n
Since then things have been quiet following action by nearby
\ncommunities and authorities against illegal miners, who remain in
\nthe area, Scott said.<\/p>\n
But overall \"touch wood things are extremely good there,\" he
\nsaid.<\/p>\n
Now, he said, Aurora has pushed a lot more money into
\nexploration at Mt. Muro and intends to provide details of new
\nexploration success at the project at Wednesday's scheduled
\nannual general meeting in Perth.<\/p>\n
The Mt. Muro contract of work area was previously believed to
\ncover two volcanic areas only, he said.<\/p>\n
\"We believe there's a third there and identified it and have
\nactually got some good results,\" that will be announced at the
\nmeeting, he said.<\/p>",
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"sponsor": "Okusi Associates",
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