Government has no knowledge over Rio Tinto plans to sell Citra Palu Minerals

Director general of geology and mineral resources Wimpy S. Tjetjep said on Monday that his office had not yet been informed over plans by Rio Tinto to sell its gold mining company PT Citra Palu Minerals in South Sulawesi.

"Until now we have not yet received the proposal to sell the Rio Tinto shares in Citra Palu Minerals," Wimpy told Petromindo.

He acknowledged that Citra Palu faced a hurdle in implementing its exploration activities because part of its mining sites were located in a forest conservation area. But he said that the forestry ministry had recently allocated another parcel of land nearby for the company's mining operation.

But reports said earlier that Rio Tinto planned to sell ownership in Citra Palu because the gold reserves in the area was not huge enough. Rio Tinto owns 90 percent shares in Citra Palu, while the remaining is held by a local investor.(godang)