Govt rejects Guinor Gold Corp offer to buy KEM gold plant
Friday, June 3 2005 - 01:44 AM WIB
London based mining company Guinor Gold Corporation said Thursday the Indonesian government had rejected its offer to purchase PT Kelian Equatorial Mining?s (KEM) gold processing facility.
Guinor had previously signed a Sales and Purchase agreement to acquire the plant, which consists of a metallurgical plant, power plant, substantial accessories and spares (including dismantling, packaging and loading onto barges), at total cost of US$15 million.
The agreement, however, is subject to a number of conditions, including the government rejecting the offer to buy it.
KEM, which is located in East Kalimantan had closed mining and gold processing operations in February due to reserves depletion.
KEM is 90 percent owned by mining giant Rio Tinto plc.(Robert)