Rio Tinto?s KEM gold production down in Q3

Despite a higher volume of ore treated during the third quarter of 2003, world mining giant Rio Tinto Limited reported that gold production from its Indonesian unit PT Kelian Equtorial Mining (KEM) had decreased to 79,000 ounces from 112,000 ounces in the previous quarter.

Rio Tinto said ore treated around 1.99 million tons in the third quarter, while the figure was 1.83 million tons in the second quarter. ?Low grade stockpiled ore was processed following exhaustion of higher grade ex-pit ore,? Rio Tinto said in its quarterly report.

Rio Tinto also reported that gold sales in the third quarter was 93,000 ounces, down from 147,000 ounces in the previous quarter.

KEM, Rio Tinto?s 90 percent subsidiary, operates a gold mine in Kelian of the West Kutai Regency, East Kalimantan. Mining from the Kelian pit ended in May 2003 when economic ore reserves where exhausted. The processing of ore stockpiles will continue until the end of 2004 and all production operations will then cease. (robert)