Forestry law forces Exco to suspend Bengkulu exploration works

Australian mining firm Exco Resources reported last week that early exploration works in its Manna gold project in Bengkulu, Sumatra had shown that a significant part of the prospect of interest is covered by an area described as protected forest under Indonesian forestry law.

?These laws have been in the process of review for some time and it is still unclear under what conditions permission to mine will be granted within these areas. Considering the risks involved in proceeding without certainty of the rights to mine, no further work is planned at Manna at this time, ? said the company in a statement.

Indonesian forestry law, which bans open pit mining in protected forests had caused many exploration project all over Indonesia halted.

Exco acquired 90 percent stake Manna copper-gold prospect in March this year. (alex)