Aurora Gold's gold output drops 20 percent in Central Kalimantan
Friday, April 20 2001 - 04:30 AM WIB
Bullion production at PT Indo Muro Kencana (IMK) in Central Kalimantan, a unit of Australian firm Aurora Gold, dropped 20 percent to 49,291 gold equivalent ounces in the first quarter of the year, from 60,298 ounces in the year-ago period.
Aurora, which is listed in Australia, said in a statement the decrease in the output was due to the lower grade mined.
IMK's gold output stood at 61,867 gold equivalent ounces in the fourth quarter of last year.
IMK produced 825,984 ounces of silver for the first quarter of the year, up from 548,682 ounces in the year-ago period, down from 927,003 in the previous quarter.
"This production decrease resulted from a 24 percent and 13 percent reduction in gold and silver grades respectively compared the previous quarter, with ore production primarily from the lower grade Permata and Bantian-Batu Tembak (BBT) mining areas, Aurora said.
Material moved for the first quarter of the year totaled 4.9 million tons, up from 3.7 million tons in the year-ago period. But ore moved was down to 254,492 tons, from 332,256 tons.
"Ore metal grades are predicted to be lower than 2000 following the exhaustion of the high grade Kerikil 2 pit in the previous quarter.
"The opportunity to increase high grade during 2001 is limited, and in 2002 will dependent on exploration success," Aurora said.
Aurora noted that IMK operated during the quarter with free access to its mining areas and its operations were not affected by the ethnic tensions in Sampit and Palangkaraya.
The indigenous Dayak tribe fought against the migrant Madurese from Java several weeks ago in Sampit and Palangkaraya, resulting in hundreds of death tolls.
It also said community programs continued during the quarter with additional emphasis placed on agricultural assistance during the rice planting season.
Other routine activities included village infrastructure projects, small business development and skills training courses for participants in the work training scheme for local Dayak people. (Bodega)