Class action against Tumpang Pitu gold mine dropped

A class action filed by a representative of people in Sumberagung Village, Pancer Regency, Banyuwangi, East Java, against the Tumpang Pitu gold mine has been dropped as it is considered premature and not in accordance with existing law and regulations, Investor Daily reported on Monday.

The paper said that the Banyuwangi District Court issued a ruling on May 11, stipulating that the legal case has been dropped. Villagers had earlier demanded for the authorities to revoke the permit of PT Bumi Suksesindo (BSI), the owner of the Tumpang Pitu gold mine project, citing among other environmental concerns.

BSI lawyer Eko Sutrisno welcomes the ruling, saying that BSI has already hold the required permits to operate the mine in line with the existing regulations.

BSI is a subsidiary of IDX-listed gold mining firm PT Merdeka Copper Gold Tbk. The Tumpang Pitu mine is expected to start production in the fourth quarter of this year.

According to 2012 JORC, the Bukit Tujuh mine holds ore reserves of 90 million tons in its oxide layer. The project is expected to produce 90,000 ounces of gold and 300,000 oz of silver per year from late 2016 to 2025.

The Ministry of Energy and Mineral Resources in March of this year declared the Tumpang Pitu gold concession as a national vital object, allowing the police to tighten security around the concession and banning local villagers from entering the area without proper permit. (*)