G-Resources temporarily shuts down Martabe operation
Monday, October 1 2012 - 09:29 AM WIB
Hong Kong-listed G-Resources Group Limited decided to temporarily shut down its gold Martabe operation after failing to meet September deadline to resolve the development of Clean Water Pipeline (CWP) due to refusal from certain local community.
"The company regrets that we have to commence this controlled shut down which undoubtedly will have an impact on foreign investors? perceptions of Indonesia as well as the inevitable negative consequences for the potential social and economic development for the residents of South Tapanuli, North Sumatra, and Indonesia in general from the presence of the Martabe Gold Mine, the largest mine investment ever made in North Sumatra.? Peter Albert, President Director of Martabe Gold Mine said in the statement.
?The company does not have unlimited funds and cannot sustain the workforce, operations and other programs without the mine operating. We have no choice but to save every dollar that we can to protect the company and to enable a restart once this issue is resolved?.
On July 24, 2012, the Martabe Gold Mine succeeded in running a test of pouring its first gold and silver in the form of bullion. It is planned that in 2013, the Martabe Gold Mine will reach its full production capacity.
The company said that the discharge of excess water to the Batangtoru river has been extensively studied and is fully permitted under the AMDAL which was approved by the South Tapanuli Regent in March 2008.
The excess clean water will be processed in a custom designed and built Water Polishing Plant (WPP) and will meet the quality standards conforming to the Decision of the Minister for the Environment No. 202/2004 before being disposed to the environment.
The company has previously held series of meeting to seek solution to develop the WPP including with Central Government, House of Representatives? Commission VII, the Governor of North Sumatra and his staff, the Chief of the Police of North Sumatra, the Regent (Bupati) of Tapanuli Selatan, the Police of the Resort of Tapanuli Selatan, and the residents of Batangtoru and Muara Batangtoru.
The company said that in the last 10 days, the company has halted its ore processing activities.
?The company remains open to constructive dialogue at all times and invites all parties to discuss any concerns they may have so that the issue can be resolved as quickly as possible for the benefit of all stakeholders,? Peter said.
Editing by Adianto P. Simamora