Aurora Gold to quit Indonesia

Aurora Gold to quit Indonesia

SYDNEY (DPA): Lawlessness and political uncertainty in Indonesia has prompted Australian mining company Aurora Gold to seek buyers for its Toka Tindung gold mine in North Sulawesi, news reports said on Monday.

Aurora also plans to shut its Mount Muro, Central Kalimantan, mine and its regional office in Jakarta.

Aurora is likely to recoup only a fraction of its 60-million- Australian-dollar (US$30 million) Toka Tindung investment after part of the lease was overun by thousands of illegal gold miners.

The Australian newspaper reported that Aurora had touted the project before as many as 40 foreign mining companies but none wanted to buy the asset even at a knock-down price.

Two Indonesian companies are likely to take over at Toka Tindung.

Aurora has complained that local officials in North Sulawesi have made no attempt to clear illegal goldminers off the site.

It has also warned of an environmental disaster because the golddiggers are using mercury in their illegal operations.