Giralia to quit E. Nusa Tenggara mining prospects

Australian mining firm Giralia Resources NL said on Friday that it was in the process of terminating and liquidating PT Flores Barat Mining, one of the two remaining copper and gold prospects in Indonesia.

The company also said it had received an offer of outright purchase for PT Sumbawa Timur Mining and is likely to be accepted. The company did not disclose the name of the prospective buyer.

Both Flores Barat Mining and Sumbawa Timur Mining are located in East Nusa Tenggara province.

The offer, said the company, will end Giralia's involvement in Indonesia, which commenced in 1993. The unstable political situation in Indonesia has made it difficult to justify continuing to fund the holding costs of these projects, said the company.

Giralia holds 20 percent working interest in both PT Flores Barat Mining and PT Sumbawa Timur Mining, while Western Metals Resources and PT Aneka Tambang hold 60 percent and 20 percent, respectively. (alex)