BSI begins blasting at Tumpang Pitu gold mine

PT Bumi Suksesindo (BSI), which owns the Tumpang Pitu gold mine in Banyuwangi, East Java, carried out maiden blasting activity on Wednesday at the planned mine track as part of efforts to begin production later this year, Kompas reported Thursday.

The paper said several local leaders witnessed the blasting activity in a ceremony closed to the public.

BSI, which is a subsidiary of IDX-listed PT Merdeka Copper Gold Tbk, plans to start production at the Tumpang Pitu gold project in the fourth quarter of this year. According to 2012 JORC, the Bukit Tujuh mine holds ore reserves of 90 million tons in its oxide layer. The project is expected to produce 90,000 ounces of gold and 300,000 oz of silver per year from late 2016 to 2025. The local administration holds a 10 percent participating interest in the project.

The gold mining project, however, has been protested by some environmental activists and local villagers on concern over local environmental destruction.

Meanwhile, Koran Tempo quoted Abdul Halim, a member of the East Java Legislative Council, as saying that BSI has the complete permits to carry out mining activities at Tumpang Pitu, as such it can?t be halted. (*)