Indomuro's site has greater gold potential than similar operation in South Africa

The mining site of PT Indo Muro Kencana (IMK) in Central Kalimantan has greater gold potential compared to similar mining operation in South Africa, according to Central Kalimantan Governor Asmawi Agani.

Asmawi was quoted as saying by the Suara Pembaruan daily on Saturday that each ton of stone at IMK's mining site contained an average of 16 gram of gold compared to 12 gram of gold in South Africa.

He said that the great potential of gold had created dispute between traditional miners and IMK, an Australian-Indonesian joint venture.

Asmawi said that the conflict emerged because the site which had long been exploited by traditional miners and culturally belonged to the local people was mistakenly included by the government in the contract of work given to IMK.

He said that the government must make review. He didn't clarify whether the contract must be revised.

Security officers had recently evicted thousands of traditional miners from IMF's mining site following strong protest from the company and threat to leave the Central Kalimantan province.

But the traditional miners last week held a demonstration at the local Muara Teweh House of Representatives protesting their eviction. (*)