Cilacap will mine for gold

Cilacap regency administration in Central Java will open gold mining operation on a 85 hectare plot in Sandahayu village, Majenang district, which is expected to contain 6.403 tons of gold.

The gold reserves actually spread all over the regency, with total reserves of 49.129 tons of gold.

The regency will not work alone, but would cooperate with PT Bimagraha Prima Perkasa and Science and Technology Development Foundation (YPST) to exploit gold in Majenang.

Bimagraha would shoulder most of the fund. But it would tie up with a Malaysian consortium that would do all the mining works. The company has earmarked $2 million for exploration alone.

Cilacap regency administration would not contribute any working capital, but it would be granted 35 percent ownership at the new gold mining interest, with majority stake of 51 percent going to Bimagraha and the remaining 14 percent to YPST.

But the Cilacap administration will be required to get the lands from farmers. It said it will offer an income sharing system to farmers whose lands would be acquired for the mining operation. (*)