Gold mining in Maluku

Gold mining in Maluku

JAKARTA (JP): PT Prima Lirang Mining, a gold mining company
operating in Southeast Maluku district, will expand its
exploration activities in the district with a total investment of
US$2 million.

The company's president, Gerry Mbatemoy, was quoted by Antara
as saying yesterday that Gensor had allocated US$1 million for
the first phase of the expansion program.

The expansion seemed to have been decided soon after Prima
Lirang was acquired by Gensor of South Africa from Shell-Metal
Section of the Shell Group last November.

Mbatemoy indicated that the expansion project will focus on
three islands: Teon, Nila and Serua -- all in Southeast Maluku.

Currently the company's mining activities are centered in
Wetar island, Maluku's southernmost island which borders on East
Timor province, with annual production capacity of five tons of
gold.

Mbatemoy said the expansion project is timely because his
company's gold reserves in Wetar, which have been exploited since
1990, are expected to deplete by 1997. (rid)