West Kutai govt can?t continue mining at KEM?s ex-mining site

The West Kutai administration in East Kalimantan province can not continue mining at the ex-mining site of gold mining firm PT Kelian Equatorial Mining (KEM) in the Kelian area due to local ruling which prohibits mining activity in river banks area.

The local Kaltim Post daily quoted deputy regent Ismael Thomas as saying that mining in river bank area would be harmful to the environment. He added that the local government was committed to preserve the environment and would not tolerate mining activity in river banks.

KEM, an affiliate of Anglo-Australia?s mining giant Rio Tinto, will end its mining operation in 2004 mainly due to the depletion of gold reserves. The local administration would take over the ex-mining site.

But some believe that part of the ex-mining sites, totaling 50 hectare are believed to still contain around 8 tons of gold reserves. The problem is that the area is located in river bank.

There has been plans for the West Kutai administration to team up with local government-owned company to exploit the ex-mining sites of KEM.

KEM currently produces 13-14 tons of gold annually.(*)