BTM looking for investors to mine for gold

PT Barisan Tropikal Mining (BTM), a unit of Australia's Laverton Gold, is currently looking for investors to mine for gold and silver in its mining concession in Musi regency in South Sumatra, Sumatera Ekspres daily reported on Wednesday (April 25).

The daily quoted the head of Musi mining office, Fauzi Zakaria, as saying in Lubuk Linggau on Tuesday that based on its contract of works, BTM had five years to exploit gold and silver in its 95,250 hectares of mining concession.

But the company had stopped its mining operation in its concession areas after three years in operation, and therefore, it was now looking for partners to mine for gold and silver in the concession for the next two years.

During its three-year operation, BTM had mined 6.26 tons of gold ore and 66.4 tons of silver ores.

Out of those concession areas, BTM had mined for gold and silver in a 400-hectare location, and it had reforested the abandoned location.

BTM spokesman Dedi Kurniawan said that the existing mining location actually still contained some gold and silver, but it was located deep under the earth, and therefore, it was not economical for the company to continue its mining operation in the current location using its current technology, considering the low prices of precious metals in the international market.

Dedi said that PT Barisan Sumatera Mining (BSM), a subsidiary of BTM, had surveyed a number of other areas in the concession, including in Muara Rupit and Rawas Ulu districts for possible gold and silver reserves. (*)