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.