C. Kalimantan asked to prepare concepts of taking over gold mining operations

The legislative council of Central Kalimantan has asked the provincial government to prepare its concepts of managing gold mining projects in North Barito which PT Muro Kencana (MIK) had planned to shut down late next year.

?The Central Kalimantan government needs to soon consider and process the plans of shutting down the mining projects, and decide the parties which can continue the mining operations,? the chairman of council commission in charge of mining affairs, Hermawan Nugraha, said on Tuesday.

IMK is a 100 percent subsidiary of Australian mining company Aurora Gold.

The government?s concepts about the management of the mining projects were badly needed so as to guarantee that the shutting down of the mining operations would not harm the local people, Nugraha said.

In order to enable the government to continue the mining operations, MK should explain to the government?s project officers and DPRD its plan of shutting the projects down, according to the legislator.

Nugaraha said the first phase of the shutting down of IMK?s mining operations would be undertaken in September of next year when their gold reserves would be depleted, according the company?s calculations. The second phase, between September and December, would be the real closing down of the mining operations, he added.

Meanwhile, the third phase, between 2002 and 2003, will be the time for IMK to demolish its plants and other related facilities before selling them to other parties.

But, certain kinds of infrastructure like roads, piers and airfield will be transferred to the local government, according to Nugraha. (*)