N.Sulawesi offers help to settle illegal operation in Aurora's gold mines
Tuesday, May 22 2001 - 06:30 AM WIB
The local government of North Sulawesi has promised to help settle illegal gold mining activities, which have hampered the operations of the Australian-based Aurora Gold's gold mining subsidiaries in the province.
The head of the mining office in the province, E. Mamesah said in Manado on Monday that the vice governor would invite the Australian company's executive to discuss the possible solution to illegal miners' operation in the company's gold concessions.
He acknowledged that the activities of the illegal miners in Aurora's gold concessions had hampered the operation of the Australian company. "Aurora wants all illegal miners be cleaned up before resuming its activities. But the local government faces dilemma to take a harsh action against the illegal miners," another mining official in the province said.
Aurora's subsidiaries PT Meares Soputan Mining (MSM) and PT Tambang Tondano Nusajaya (TTN) have stopped their operations for at least two years due to illegal mining activities in the two companies' concession areas.
Victor Malonda, the deputy chairman of the province's mining office, said that the two companies had spent some US$55 million in developing their mining projects in the province.
PT MSM, which holds a permit to develop a gold concession covering 8,988 hectare-areas in Bitung and Minahasa regency was still in the state of construction when it stopped its operation, while its affiliate TTN, with a 297,200 gold mine concession, was in stage of exploration.
On Monday, Aurora Gold signed a head of agreement with Australia's Austindo Mining to divest its 85 percent stake in PT MSM and PT TTN. (*)