Barito delays issuance of IMK?s gold expansion permit

The North Barito regency, Central Kalimantan has delayed the issuance of the permit for the expansion of the gold mining area of PT Indo Muro Kencana (IMK), a wholly owned subsidiary of Australian gold miner Aurora Gold, Banjarmasin Pos daily reported on Monday.

Daut Danda, a senior official at the regency?s mining office said that the permit for the expansion of the gold mining company had not been issued because the local administration still doubted the status of the company?s land area.

He said that some of the company?s land area might occupy local residents? properties and the area of some forest concession owners. He added that the issuance of the expansion permit would be based on a regulation issued by Minister of Energy and Mineral Resources under which the licensing authority is delegated to the local government.

If the gold mining company refused to pass through the procedure and asked the expansion permit directly from the central government, the Barito regency would reject it, he said.

Indo Kencana is seeking a permit to expand its 21,000 hectare-gold mining concession in Jukung Sopan, Permata district and in Tahujan Untu in Tanah Siang district. (*)