Australia will ask Indonesia to stop illegal miners

Australia plans to ask Indonesia to intervene to seek a peaceful end to the unauthorised digging of an Australian gold mine by about 2,000 villagers on remote Halmahera island, officials were quoted by Reuters on Friday.

The request was expected to come next week during annual trade talks between Australian Trade Minister Mark Vaile and his Indonesian counterpart Rini MS Soewandi, said a trade official who asked not to be named.

Newcrest Mining Ltd was forced to halt construction on the Toguraci mine on one of Indonesia's most northerly islands in late October, two months before operations were scheduled to start, after locals carrying little more than pick axes and shovels converged on the property.

The locals, known as garimpeiros, haul away little more than dirt to sift through for gold dust at home in Halmahera village, leaving behind heavier ore, where most of the metal is contained.

On October 24, Newcrest had put the number of garimpeiros at only a "couple hundred," though the trade official told reporters around 2,000 locals had occupied the property.

"It's our expectation that Mr Vaile will want to address this during his meeting with Rini Soewandi. We have made clear to Indonesia the need to resolve this issue in a peaceful manner and fully consistent with Indonesian law," he said.

Newcrest has said the mine holds about 250,000 ounces of gold, worth around $96 million at prevailing bullion prices.

Newcrest, which operates another mine two km (1.2 miles) to the west as well as larger lodes in Australia, has spent between A$10 million ($7.1 million) and A$15 million developing Toguraci.(*)