Temporary suspension of mining at Mt Muro

By Harri Roy Gunawan

ASX-listed Straits Resources Limited announced that it has temporarily suspended mining activities at its Mt Muro operations in Indonesia in response to a directive from the Provincial Governor of Central Kalimantan. The Mt Muro mill will continue to operate, treating stockpiled ore, the company said in a statement obtained Thursday.

While Straits Resources does not agree with the legal basis of the directive the company has chosen to voluntarily cease mining activities, on a short term basis, in a sign of good faith while the company seeks to address the matters raised in the directive.

Managing Director of Straits Resources, Andre Labuschagne said ?It is extremely disappointing that this type of action is occurring as it disrupts the continuity of production during a critical period as we ramp-up production. It also has a flow-on financial effect in the local community surrounding the Mt Muro operations, as we will be standing down some of our workforce, during this period.?

?Importantly, Straits Resources has secure tenure over its mining leases through its 3rd generation Contract of Work (CoW). The directive does not have any impact on either the validity or the continuation of the CoW.?

Editing by Reiner Simanjuntak