Mining firms suspend gold projects amid unrest
JAKARTA (JP): Publicly listed state-owned mining companies PT Tambang Timah and PT Aneka Tambang (Antam) said on Thursday they suspended gold mining projects amid political riots that have shaken several parts of the country.
President of tin mining firm PT Tambang Timah Erry Riyana Hardjapamekas said the company suspended its gold exploration projects in Aceh, East Kalimantan and West Kalimantan due to political unrest there.
"We're afraid our geologist might not return home," he told reporters on the sidelines of a seminar on corporate leadership, which was organized by the Indonesian Corporate Leadership Development Institute.
"So we're currently just focusing on tin," he added.
Timah is basically a tin mining operation, but it has also started to expand into gold and copper mining activities.
Erry said that its gold mining project in Aceh, operated by a joint venture with U.S.-based gold mining company Phelpsdodge, was already in an exploration stage for more than two years before it was suspended three months ago.
He added that gold projects in East Kalimantan and West Kalimantan were also still in an exploration stage, but weren't a joint venture operation.
Aceh has been badly hit by political riots from early this year as separatist guerrillas intensified pressure to demand an independent Islamic state. Many have died in clashes between the military and guerrillas.
Ethnic riots have also hit Kalimantan this year.
When asked to comment on Timah's profit this year, Erry said that it would likely be slightly lower than last year's, primarily due to lower tin prices.
He forecasted tin prices to be about US$5,200 per ton till the end of this year compared to about $5,400 last year.
He said that production capacity would remain the same as last year's at more than 40,000 tons of tin.
Meanwhile, president of the gold and nickel mining firm, Antam Deddi Aditya Sumanagara, said only the company's precious metal mining exploration on Haruku island in Maluku was suspended due to social unrest there.
The precious metal project is a joint venture operation with Canada's Ingold.
"We don't know when to resume operations there. We're still waiting for a recommendation from the local administration," Deddi told reporters on the sidelines of the same seminar.
Maluku has been plagued with bloody clashes since early this year which have killed about 550 people.
But Deddi said that the company's other mining operations in Maluku were not suspended.
Asked about the company's performance this year, Deddi said gold production was expected to increase to 2.5 tons this year, compared to 1.5 tons in 1998.
"If the security condition improves, we can exceed the 2.5 ton level," he said, pointing out that the company's maximum capacity was at the three-ton level.
He added that feronickel production would jump to 9,300 tons this year from 8,900 tons last year.
When asked if there was an impact from deteriorating relations between Indonesia and Australia on its joint venture operations with Australian mining companies, Deddi said: "We don't have any problems with our Australian partners."
Aneka Tambang has several joint venture operations with Australia's Herald Resources, Western Mining, Pelsart International, Bornite Pty. Ltd., Pacific Wildcat Resources and Broken Hill Proprietary.
Relations between Indonesia and Australia have plunged to their lowest level in the wake of violence in East Timor. Australian troops are now leading a multinational force to restore order and security in the territory after violence hit the region following the Aug. 30 self-determination vote which turned down an autonomy proposal from Jakarta. (rei)