Indo Muro-Pama contract extended<\/p>\n
JAKARTA (JP): Gold producer PT Indo Muro Kencana and mining
\ncontractor PT Pamapersada Nusantara signed a four-year contract
\nextension yesterday for the operations at the Mount Muro gold
\ndeposit in Central Kalimantan.<\/p>\n
The contract extension was signed by Indo Muro president John
\nVernon and Pamapersada president Sudarso Prasetio at the Arya
\nDuta hotel.<\/p>\n
Indo Muro administration manager Hidayat S. Soenarto said the
\nUS$60 million contract allowed Pamapersada to mine ore and waste
\nat the Mount Muro gold field for another four years.<\/p>\n
He said the initial contract with Pamapersada began in 1993
\nand Pamapersada had since produced approximately 600,000 gold
\nounces from about 23 bank cubic meters (BCM) of waste and ore.<\/p>\n
Indo Muro is 90 percent owned by Australia's Aurora Gold Ltd
\nand 10 percent by PT Gunung Muro Perkasa, while Pamapersada is
\nwholly owned by the Astra Group.<\/p>\n
Hidayat said the Indo Muro concession was among the Third
\nGeneration mineral contract of works (COW) approved by the
\ngovernment in 1983.<\/p>\n
The company started commercial production at the 720,000
\nhectare concession in 1995.<\/p>\n
\"With a reserve of 6.4 million tons, with 4.38 grams per ton
\ngold and 97 grams per ton silver, Indo Muro is one of the lowest
\ncost producers with a total gold output of 230,000 ounces per
\nyear,\" he said.<\/p>\n
Indo Muro produces 120 tons of silver and 4.8 tons of gold
\nannually.<\/p>\n
Pamapersada is one of the biggest mining contractors in
\nIndonesia with an annual turnover of about $250 million and has
\nover 1,100 pieces of mining equipment, including dump trucks,
\nexcavators and bulldozers.<\/p>\n
Aside from the contract with Indo Muro, Pamapersada has $1
\nbillion in contracts for mining operations with several companies
\nacross the country.<\/p>\n
It has a 15-year contract with coal producer PT Adaro
\nIndonesia in Tanjung, Central Kalimantan; a five-year contract
\nwith coal producer PT Indominco Coal Mandiri in Bontang, East
\nKalimantan; and a 10-year contract with state-owned coal producer
\nPT Tambang Batubara Bukit Asam.<\/p>\n
Hidayat said aside from the Mount Muro gold field, Aurora Gold
\nwas planning to develop the Toka Tindung gold deposit in North
\nSulawesi in a joint venture with PT Austindo Nusa Jaya, owned by
\nthe Tahija family.<\/p>\n
The consortium planned an annual production of 123,000 gold
\nounces a year for the Toka Tindung reserve, he said. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indo-muro-pama-contract-extended-1447893297",
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