Gold, tin reserves found in N. Sumatra

Gold, tin reserves found in N. Sumatra

Apriadi Gunawan, The Jakarta Post, Medan

Two local mining companies have discovered gold, tin and zinc
reserves in North Sumatra province, a local government official
said on Monday.

Head of the North Sumatra Mining Office Washington Tambunan
said PT Horas Nauli had found a 30 million cubic meters of gold
reserves in Batangtoru subdistrict, South Tapanuli regency, and
PT Dairi Prima Mineral had discovered 10 million cubic meters of
tin and zinc reserves in Dairi regency after seven years of
exploration.

Horas Nauli and Dairi Prima had invested about US$10 million
and $5 million respectively during the exploration period, he
added.

"They will proceed from the discoveries to production and will
inform us about their upcoming investment over the next two
months," he told The Jakarta Post on the sidelines of a hearing
with the North Sumatra provincial legislative council.

Both companies would jointly develop their respective reserves
with leading international mining company Gold Grouf Asia Pacific
Ltd.

Meanwhile, Gold Grouf president Geoffren Gold said his company
was still seeking an appropriate method to develop the reserves.

"It will take at least a year to realize the (production)
plan," he said.

Under Law No. 25/1999 on intergovernmental fiscal balance,
provincial and regency administrations receive 80 percent of the
government's revenue from mining resources in a particular
region.