Govt terminates Meratus Sumber Mas gold mining rights

The government has recently terminated a 6,684-hectare mining Contract of Work (CoW) held by gold miner PT Meratus Sumber Mas (MSM) in South Kalimantan.

According to a government source at the ministry of energy and mineral resources, MSM has among others failed to deliver activity report and make financial obligation to the government. “The company has been warned earlier,” the source said. The source did not elaborate.

The Meratus CoW is located within Hulusungai Selatan, Tapin, Banjar and Tanah Bumbu regencies of the province. The gold prospect was awarded by the government in 1998.

MSM (now PT Pelsart Tambang Kencana) is one of 13 firms that has been allowed to operate in protected forests following a government regulation in lieu of law (Perpu) issued last July.

The Meratus CoW has entered the feasibility study (second extension) stage. However, there were no field activities undertaken in the CoW since December 2003.

MSM is an 85 percent-owned by Australian mining company Pelsart Resources NL, while the remaining interest is held by state-owned mining firm PT Antam. (Robert)