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)