Bumi buys Central Sulawesi gold project

JSX-listed coalmining house PT.Bumi Resources Tbk. said it had signed sale and purchase agreement to take over the troubled Central Sulawesi gold mining project.

The company said in a report filed to The Jakarta Stock exchange that it had signed deal on May 9, 2005 to purchase 99.996 sahres of PT.Citra Palu Minerals (CPM), the operator of the project.

The company said the deal has yet to be closed pending approval from Ministry of Energy and Mineral Resources and Investment Coordinating Board.

According to Petromindo.Com data, CPM is 90 percent owned by Anglo-Australian mining giant Rio Tinto Plc. CPM?s gold project is located at Poboya Forestry Park, where open pit mining is not allowed. Rio Tinto had earlier tried to sell the project to Newcrest Mining but the latter cancelled the plan, as it was not able to secure permit to develop the project.

The plan to develop CPM?s gold project is also heavily resisted by local and national NGOs.

Elsewhere, Bumi denied media reports that said it was interested to but shares of Papua copper and gold miner PT.Freeport Indonesia. PT.Freeport is a unit of Freeport McMoRan Copper& Gold. ?Up to now, Bumi has no plan to buy PT.Freeport shares,? the statement said. (alex)