Aurora Gold halts gold shipments

Aurora Gold halts gold shipments

PERTH (Reuters): Indonesian gold miner Aurora Gold Ltd said yesterday it had halted shipments of gold from its Mt Muro mine in East Kalimantan province due to civil unrest in Jakarta but that mining was not affected.

"Obviously trucks on the street filled with bullion, given there is looting and rioting going on in Jakarta, is not something Brambles (security firm) wants to guarantee," Aurora's general manager of finance David Maroney told Reuters.

Gold dore bullion shipments from Mt Muro to Jakarta for refining, where it is purchased by Perth-based Gold Corp, is now regarded as too risky, Maroney said.

Gold Corp had advised Aurora that it was suspending bullion purchases for the time being under force majeure provisions of its purchase agreement with the mine, he said.

"All dore shipments in transit from Mt Muro are being held in safe custody pending resumption of normal activities, Aurora said in a company statement.

"Approximately US$1.5 million of Aurora's unrefined metal is currently held at the refinery in Jakarta and is covered by appropriate insurance arrangements," the company said.