Minister approves gold mining in forestry park
Monday, February 26 2001 - 04:30 AM WIB
The ministry of energy and mineral resources has approved PT Citra Palu Mineral's plan to mine gold at the forestry park in Poboyo district, Palu, Central Sulawesi, according to a report.
Palu mayor Suardin Suebo was quoted by Antara news agency as saying that Minister of Energy and Mineral Resources Purnomo Yusgiantoro had approved the company's plan to conduct mining activities on 500 hectares out of the 800 hectares forestry-park.
But, he said, the company was obliged to create a forestry park on a similar size of land elsewhere in compensation for the appropriated land.
"The mayoralty has been informed by PT Citra Palu Mineral about the minister's approval," Suardin said on Saturday in Palu.
According to Suardin, the area is believed to contain a gold reserve of 60 tons and the company had formed strategic alliance with Australian investors to mine the gold.
PT Citra Palu Minerals is a subsidiary of Anglo Australian mining giant Rio Tinto. (*)