Firm to close gold mines

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)