Newcrest to close gold mine if permission to develop new reserve not granted

Australian gold miner Newcrest Mining Limited will close its Gosowong Mine in Halmahera Island, North Maluku in 2003 if it has not get permission to develop new deposit by July this year, Wimpy S. Tjetjep, Director General of geology and Mineral Resources said Tuesday.

Newcrest, which will terminate Gosowong mine due to ore reserve depletion in July 2003 has discovered new reserves in Toguraci, near the current mining area and wants to develop it to extend the mining life. But Toguraci is located within protected forest, where, according to forestry law No. 41 year 1999, open pit mining activity is banned. Newcrest had been trying to seek permission from the Ministry of Forestry to exempt it from the ruling as it had obtain contract of work to far before the forestry law took effect in 1999.

?If the problem is not resolved by July, then, as required by the contract of work, PT. Nusa Halmahera Mineral (NHM) will lodge mining closure plan to the government,? a well-advised source told Petromindo.Com Wednesday.

Newcrest holds 82.5 percent equity in NHM, the operator of the Halmahera gold mine, while state miner PT Aneka Tambang Tbk holds the remaining 17.5 percent.

Meanwhile, a government source told Petromindo.Com that government will soon hold a meeting with The House of representative to discuss the fate of the mining projects, including Newcrest's Gosowong mine, which permits were issued far before forestry law.

"Under Law No. 41/1999, there is a possibility to alter protected forest status with approval from the House. Government had sent letter to ask the House to discuss and decide over the matter," said the source. (alex)