Rio Tinto’s Kelian to ship last gold in February

East Kalimantan gold mining firm PT. Kelian Equatorial Mining will cease operations in February and would ship its last gold, silver production on February 5 2005.

“Processing plant would cease operations in February,” said Anang Noor, an official from parent company Anglo-Australian mining giant Rio Tinto on Sunday.

KEM has ceased mining operations in 2003 due to depletion of ore reserves, and has since processing ore from the existing stockpile.

KEM would spend US$ 74 million to finance mining closure programs at the gold mine, which is located in West Kutai regency, in addition to establishing a trust fund amounting to US$11 million.

KEM will carry out mining closure programs in three stages. The first stage that will be carried out between 2005 and 2008 will cover a number of activities including land rehabilitation and the establishment of a monitoring institution.

Second stage, which will be conducted between 2008 and 2003, would include environmental monitoring activities and the conversion of former mining areas into protected forests.

The third stage will be carried out after 2013, the company, in cooperation with the local community, will establish a monitoring institution to handle environmental monitoring activities which will be financed by the trust fund.(robert)