KEM expects lower losses in 2001<\/p>\n
KELIAN, East Kalimantan (JP): Gold mining company PT Kelian
\nEquatorial Mining (KEM) expects its financial losses to be lower
\nat about US$5 million this year compared to $10 million in 2000.<\/p>\n
Company president Charlie Lenegan said on Saturday the decline
\nwas mainly due to the reduction of waste rock being moved from
\nthe pit to the storage area.<\/p>\n
"The less waste rock is moved, the lower the transportation
\ncosts will burden us," he told a group of reporters who visited
\nthe company's mining site.<\/p>\n
KEM commenced its gold mining operation in Kelian, Kutai Barat
\nregency, East Kalimantan province in 1992, after the discovery of
\nan indicated reserve of 85 million tons of ore with an average
\ngold gauge of 1.9 gram per ton in 1989.<\/p>\n
KEM, which is 90 percent owned by Anglo-Australian giant Rio
\nTinto group and 10 percent by PT Harita Jayaraya will end its
\nmining activities in 2004 as there is no more gold ore in the
\nmine site.<\/p>\n
Last year, the company moved about 25 million tons of waste
\nrock from the mine site to the storage area.<\/p>\n
The company also processed about 6.2 million tons of ore,
\nproducing about 338,000 ounces of gold and 326,000 ounces of
\nsilver.<\/p>\n
Charlie said this year's gold production would be about the
\nsame level as last year's.<\/p>\n
According to him, gold price currently stood at about $266 per
\nounce, slightly lower than last year's price of $270 per ounce.<\/p>\n
He added that gold had to be traded at $380 per ounce to be
\nprofitable to the company.(05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kem-expects-lower-losses-in-2001-1447893297",
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