Timah's subsidiary extends delay in exploration in Aceh

PT Kutaraja Tembaga Raya, a subsidiary of publicly listed tin mining company PT Timah, will continue to halt its exploration activities in its gold mine in Aceh until November, this year as armed conflicts between the security force and the pro-independence movement in the troubled province are continuing.

Astaga.com reported on Friday that the company had asked the government's permit to extend the delay in its exploration activities until November this year, as the security situation was getting worse.

The company, which began its exploration activities in April 1997, was forced to stop its exploration activities in May last year due to security problem. The company initially planned to temporarily stop its operation for six months.

PT Kutaraja, a joint venture between PT Timah (45 percent) and Phelps Dodge Australasia (55 percent), control gold mine concession in West Aceh, Pidi and Aceh Besar regencies.

According to Satunet.com, the company had returned a larger part of the concession area to the government due to the limited amount of gold deposits found in the mining site.

Timah's corporate secretary Prasetyo B. Sakasono said that the concession area maintained by the company at present was only about 26.3 percent of the initial size. (*)