Hillgrove scales down Indonesian operations

By Alexander Ginting

Australian mining firm Hillgrove Resources Limited reported that it has reduced activity on its Indonesian projects and closed the exploration offices in Perth and Jakarta.

?Hillgrove will maintain both Indonesian projects on an exploration care and maintenance basis while external parties are evaluating the potential of earn-in and investment possibilities,? the company said in a report released Monday.

Hillgrove continues to maintain exploration care and maintenance teams at its advanced exploration copper-gold projects at Bird's Head in West Papua and Sumba Island in East Nusa Tenggara. An exploration evaluation team from a major mining group is continuing its review of the projects, and is planning a third inspection visit for early in the year, the company added.

Along with this, during recent investor briefings in Hong Kong and Singapore, interest was generated towards potential investment in these advanced projects, from both a pure investment perspective for future copper discoveries and from a potential direct involvement. Interest in exploration is particularly strong from local Indonesian investors.

?Hillgrove believes that projects are continuing to receive support for further exploration expenditure based on the quality of the asset. With the status of the two projects in advanced exploration stage, the recent ban on mining exports does not have an impact on the value or the potential progress of the next stage works,? it added.

Local landholder relationships are being maintained at the projects, and an updated review of next step targets on both projects will be undertaken during the first half of the year.

Editing by Reiner Simanjuntak