KEM produces 82,000 ounces of gold in Q4

World mining giant Rio Tinto Limited reported gold production from its Indonesian unit PT Kelian Equtorial Mining (KEM) had increased to 82,000 ounces in the fourth quarter of 2003 from 79,000 ounces in the previous quarter, while gold sales was down to 47,000 ounces from 93,000 ounces, respectively.

Rio Tinto said ore treated during the fourth quarter of 2003 was greater than in the previous quarter due to processing softer ore and the benefit of process improvements.

KEM treated 2.18 million tons of ore in the fourth quarter of 2003, compared with 1.99 million tons of ore in the year-ago period. Low grade stockpiled ore was processed following exhaustion of higher grade ex-pit ore in May 2003, Rio Tinto added.

KEM, Rio Tinto?s 90 percent subsidiary, operates a gold mine in Kelian of the West Kutai Regency, East Kalimantan. Mining from the Kelian pit ended in May 2003 when economic ore reserves where exhausted. The processing of ore stockpiles will continue until the end of 2004 and all production operations will then cease. (robert)