RI unrest hurts Aurora

RI unrest hurts Aurora

PERTH (Dow Jones): Australia's Aurora Gold Ltd. said Wednesday
that gold production from its Indonesian projects is being
hampered by political uncertainty in the country, and a breakdown
in law and order.

The Perth-based miner's gold output fell 12 percent to 55,388
ounces in the three months to June 30, from 62,873 ounces in the
immediately preceding three months.

Aurora told the Australian Stock Exchange that although a
decrease in mineral head grades was the main reason for the fall
in output, the company's operations are continuing to feel the
impact of "post-Soeharto uncertainties...and the drawn-out
election process."

Aurora suspended mining operations at one of three producing
areas at its Mt. Muro operation in central Kalimantan last month,
and is continuing to have negotiations with local Bantian
villagers. Last week, the company stopped mining at Permata,
another producing area at Mt. Muro after 100 people entered the
pit in protest over compensation issues.