Centurion suspends operation, affected by divestment regulation

By Romel S. Gurky

Canadian based Centurion Minerals Ltd. recently stated that the recently announced Indonesian government regulation (No.24/2012) pursuant to which international mining companies, beginning 5 years after production, will be required to divest 51% of their interests in mining projects by year 10 of production, "has adversely affected share prices of mining and exploration companies with Indonesian projects and created a level of uncertainty for future investment."

The company stated that due to this decree, it has decided to take key strategic initiatives that includes temporarily suspending exploration and drilling activities and expenditures on its Indonesian projects, including drilling activities on its Banda Raya, Aceh project and clarifying with its local partners and provincial leaders regarding the implications of the decree on its Acehnese projects.

Centurian also stated to consider reviewing and evaluating mineral exploration projects available for acquisition outside Indonesia.

Regarding its operation in Indonesia, it plans to review the possibility of amending terms in the previously announced non-brokered private placement, while considering to support and participate in planned foreign and Indonesian mining companies' lobbying efforts to have this decree repealed.

Centurion is of the view that greater clarity on the practical implementation of these proposed divestment regulations is required, and therefore intends to seek clarification from its Aceh, Indonesian partners and Acehnese leaders following the April 9th provincial elections in order to assess the impact of the new regulations, if any, on the Company's operations.

The Company's geological team will continue to assess results of field work completed to date on the Banda Raya project and samples from drill holes completed will be reported when assay results are received.

Substantial progress has been made in defining several promising epithermal gold prospects within its Aceh properties, and subject to clarification of the impact of this decree, Centurion remains committed to its prospective projects.

Editing by Er Audy Zandri