West Wits agrees to deliver control of Alluvial Minesite
Monday, June 3 2013 - 08:00 AM WIB
ASX-listed West Wits Mining Limited has signed a co-operation agreement with the principal artisanal mining operator at Derewo River which provides a pathway for the transition from current artisanal mining to a company operating conventional alluvial mine at the site.
The parties envisage that this staged transition will occur over six to eight months during which the company will complete construction of infrastructure and commence mining through a hydraulic alluvial circuit whilst the artisanal operations are progressively wound down.
The company said in a press statement this week that the agreement covers the company?s 40 hectare mining lease located on the Derewo River, Papua province.
The signing of this co-operation agreement will enable the company to begin processing the alluvial gravels through a basic gravity circuit at an early stage and prior to the full alluvial circuit becoming operational.
This early stage production will be undertaken at alternate sites to where the main artisanal population currently works and resides prior to their relocation.
This agreement is an important step as the key opponent to the company?s progress has now agreed to support West Wits as the ultimate operator of the mine. This agreement obliges the principal party of the artisanal operation to support the development activity of West Wits.
The completion of this agreement has been made possible through the relationships forged by the company with the indigenous community as well as with a number of key officers within the Indonesian law enforcement agencies.
Editing by Benget Besalicto Tnb.