Tumpang Pitu gold concession declared as national vital object

The Ministry of Energy and Mineral Resources (MEMR) has declared the Tumpang Pitu gold concession in Banyuwangi, East Java, as a national vital object, allowing the police to tighten security around the concession and banning local villagers from entering the area without proper permit, detik.com reported Saturday.

Zaenal Arifin, an official at the MEMR, denied suggestion that the move was response to the riot in November of last year, where villagers attacked and vandalized the facilities at the gold mine as the request for the national vital object status a few months prior to the incident.

The Tumpang Pitu (or also known as Bukit Tujuh mine) gold concession is operated by PT Bumi Suksesindo, a subsidiary of IDX-listed PT Merdeka Copper Gold Tbk. The company has previously said that production is expected to start in the fourth quarter of this year.

According to 2012 JORC, the Bukit Tujuh mine holds ore reserves of 90 million tons in its oxide layer. The project is expected to produce 90,000 ounces of gold and 300,000 oz of silver per year from late 2016 to 2025. (*)