Firm to close gold mines

JAKARTA (JP): PT Prima Lirang Minang will close its gold and silver mines on Wetar Island, Southeast Maluku, next March because its deposits are depleted, chief executive Gery Mbatemoy said yesterday.

Prima Lirang, an Indonesian-Australian joint venture, has been producing gold bullion and silver since 1992 for its buyer PT Logam Mulia Jakarta, Mbatemoy was quoted by Antara as saying in Ambon.

"Prima Lirang annually produces between 1.8 tons and two tons of gold and 40 tons of silver," Mbatemoy said.

Although the company has invested up to US$50 million in the mines and has secured a market, it has never been profitable because it has never met its bullion production schedule, he said.

He said Prima Lirang would explore new sites around Lerokis village and Kali Kuning, within its Southeast Maluku concession which is valid for another 20 years. (06)