Mining firms suspend gold projects amid unrest
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)