Rio Tinto corrects statement

JAKARTA (JP): Mining company Rio Tinto Indonesia said on Tuesday the closure of the gold mine of its subsidiary, PT Kelian Equatorial Mining (KEM), since early this month has resulted in a potential loss of 700 kilograms of production or 20,000 troy ounces not 400,000 troy ounces as reported earlier.

Rio Tinto said the company's estimated production loss issued during Monday's press conference was incorrect.

During the previous meeting, the company said its gold mining operations in East Kalimantan have been suspended for 20 days as local residents continued to block the road going to the company's mine operation. The mine closure might cause potential loss in the production by 400,000 troy ounces, it said.

"The correct amount of lost production is about 700 kilograms," the company's press statement said.

Angry over land compensation, locals have blocked the only supply road leading to KEM's gold mine in West Kutai regency, East Kalimantan.(bkm)