PT Timah's gold exploration in Aceh hangs in the balance

Gold exploration in Aceh by PT Kutaraja Tembaga Raya (KTR), a subsidiary of PT Timah, has been hanging in the balance, following the company decision to halt any activities in the province since October 1999 following heightening security tensions in the territory.

A director at PT Timah, Maryat Nirwandi, told Bisnis in Surabaya last week that as long as security situation in the province had not improved, the company would not allow its subsidiary to resume exploration activities in the province.

"(We stick to our decision) because the risks are so great, involving the safety of our employees," he said.

KTR, a joint venture between Timah (45 percent) and Phelp Dodge (55 percent), started its exploration activities in Aceh since 1997.

However, since Oct. 1999, the company pulled out from Aceh, taking all facilities it brought to the province, and thus minimizing potential losses from the exploration activities in Aceh.

Besides in Aceh through KTR, Timah has also gold exploration activities in East Java and West Kalimantan, through PT Timah Investasi Mineral (TIM).

Maryat said TIM was currently exploring gold in an area of 8.4 hectares in Tempursari, Lumajang, East Java, and 2,400 hectares in West Kalimantan. Currently, the exploration activities in the two areas were still in their early stage, and therefore, it was difficult to say when the exploitation activities would start. (*)