Bumi to start C. Sulawesi gold production 2011
Thursday, August 9 2007 - 02:03 AM WIB
JSX listed firm PT Bumi Resources Tbk. through its subsidiary, PT Citra Palu Minerals (CPM), will produce gold from its Poboya mining prospect in Palu, Central Sulawesi in 2011, Investor Daily reported Thursday.
Bumi’ senior vice president investor relations Dileep Srivastava said in Jakarta recently that Bumi had booked a gold reserves of two million ounces but the company continued to conduct exploration activities to find more gold and other new minerals. “There are six prospects within the Contract of Work area. Gold has been discovered in one prospect and we are still exploring other five,” he said.
He expressed the hope that Bumi would complete its exploration activities to ascertain other mineral deposit in the blocks in 2008. “We will probably announce the overall amount of deposit potentials in 2008,” he said.
When the exploration is completed in that year, Bumi will soon conduct a feasibility study in reparation for building production facilities. “If everything runs as planned, the mine can start production in 2011,” he said.
However, Dileep refused to disclose the amount investment made in the mine because all attention was given to the planned exploration. Bumi would not determine the amount of investment until the amount of deposit was ascertained, he said.
Meanwhile, Director for business development of the directorate general of mineral, coal and geothermal at the Energy and Mineral Resources Ministry MS Marpaung said that the government had given the opportunity to Bumi to conduct exploration activities on its mining with eight-year term and was expected to be finished in 2007. “The mining has 30 year-production contract. The working contract is effective when the mining started production,” he said.
However, he also asserted that the forest area where Bumi mining concession was located was not forest-conservation-designated area. “So, the area is allowable for mining activities but the company has to pay compensation,” he said.
In 2005, Bumi bought 99.99 percent shares in CPM from Newcrest Mining Ltd. CPM owns 561,050 hectares of mining concession in Palu, Central Sulawesi. (*)