Indo Muro to increase output after illegal mining problem resolved
Monday, August 14 2000 - 02:30 AM WIB
Gold mining company PT Indo Muro Kencana, a subsidiary of Australian firm Aurora Gold, is set to increase the output of its Mount Muro gold mine in Central Kalimantan this year after the illegal mining problem in the area is resolved.
Aurora Gold Indonesia's chief operating officer Joe Ariti told PetromindoCom in an interview on Friday Indo Muro was set to increase its gold output to 240,000 ounces this year, as against 224,085 ounces last year.
He said the company's output dropped by more than 30,000 ounces last year due to the problems caused by illegal miners.
Thousands Illegal miners, backed up by local non-governmental organization Yayasan Sumber Daya (Resources Foundation) and national NGO Jatam (Mining Network), occupied the Bantian-Batu Tembak and Permata-Hulubai mining complexes for about one year since mid-last year, claiming the areas belong to their ancestors and Indo Muro failed to fully pay compensation to them.
The invasion forced Indo Muro to close both mining complexes last year.
After the closure of both complexes, the company continued extracting gold ore in the Kerikil and Serujan areas but activities in both areas later turned difficult due to the troubles caused by illegal miners who came into the area periodically.
"Actually, the local residents supported us. The illegal miners are mostly from outside the areas, including Javanese, Sundanese from West Java and Batak people from North Sumatra," Ariti, who was accompanied company government relations manager Hidayat Soenarto, said.
According to Ariti, most of the compensation claims were proved false.
Concerned with the situation, the local government gradually took over the occupied areas and expelled the illegal miners in the second quarter of the year.
The action was backed up by President Abdurrahman Wahid, who issued a decree on April 3 ordering the National Police Chief, Attorney General, all mayors, regents and mayors to "take stern actions against all parties, both government apparatus and community members, who are involved in illegal mining activities."
Ariti said production at the Mount Muro gold mine returned to normal in June this year after the local authorities expelled all the illegal miners and returned the occupied areas to Indo Muro.
The illegal miners were provided with Rp 300,000 (US$1=Rp 8,465) in travel allowance to the local port, whence they were expected to their own villages, Ariti said.
"We are very grateful for the assistance provided by the local regent, governor, police, Minister of Mines and Energy and the President to solve the problem," Ariti said, adding the action taken by the Central Kalimtan authorities in solving illegal mining problems could become a model for the authorities of other areas.
"What the Central Kalimantan has done is just what investors expected from any local governments," Ariti said.
According to Ariti, two platoons of the Brimob and Sabhara police elite force now routinely patrol the gold mine to ensure that no illegal miners return to the area.
As part of the resolution of the illegal mining problem, Ariti said, Indo Muro has released one third of its 40.72 squarer kilometers Mount Muro concession to the local government, which is expected to allocate the land for local traditional miners to develop.
"The land is only for local traditional miners, not illegal miners from outside the areas," Ariti said. (--Alex Ginting and Hans Bodega--)