Security in Mt Muro returns to normal

By Ruli Setiawan

ASX-listed Straits Resources said on Thursday that the security situation in its Mt Muro gold project in Central Kalimantan has returned to normal.

As announced to the market on 1 July 2013, operations at Mt Muro have been suspended since Saturday following the incident at the mine, where illegal miners caused damage to several buildings, vehicles and equipment.

Straits Resources? Executive Chairman, Mr Andre Labuschagne, who is currently on-site at the Mt Muro operation, said: ?First and foremost, the security situation has returned to normal, the damage has been assessed and the key task at hand centers on making the necessary repairs and bringing the operations back online. Our number one priority continues to be the safety of all of our employees and contractors. In respect to this we have received excellent support from the various government authorities who have mobilized additional security personnel (local police, Indonesian National Police Mobile Brigade and army) to site. We are continuing dialogue with these various governmental agencies with respect to ensuring the safety and security of people and assets on the site going forward.?

?The major damage sustained was to several key buildings in the camp and the mining office and fourteen light vehicles are no longer serviceable. Importantly all major mining equipment is intact. Despite these inconveniences, the site is quickly returning to normal.?

?Due to the current suspension of operations we have brought forward planned maintenance work on the mill and coal fired power station. Various start-up scenarios are being examined and we are aiming to finalize a plan in the coming week.?

?I met with the Provincial Governor of Central Kalimantan whilst he was on site yesterday and will meet with other senior local government authorities today. The Provincial Governor reaffirmed his support for the company and the Mt Muro operation and committed to provide the resources necessary to secure the site and enable operations to continue.?

?Despite the difficult circumstances of the weekend it is pleasing to see how our people, our business partners and the local authorities have all responded and quickly refocused on getting the operation back up and running as soon as possible.?

Editing by Adianto P. Simamora