New gold, tin reserves discovered in North Sumatra

New gold, tin reserves discovered in North 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.