Antam temporarily stops granite exploration in Riau

Jakarta - Mining company PT Aneka Tambang Tbk (Antam) has temporarily ceased granite exploration operations on Piatu Hill in Kijang Bintan district, Riau Islands, after being officially informed the hill lies in a preserved forest area.

"After receiving a Forestry Minister`s circular issued in October 2007, we sent a letter on April 25 to our partner in the project, PT Mitra Investindo Tbk, to stop the explorations," Antam`s corporate secretary, Bimo Budi Satriyo, said here Friday.

Bimo said the granite exploration area had become subject to a governmental investigation so continuing the exploration activity would make Antam as the concession-holder liable to legal sanctions.

Antam had a license to explore granite on Piatu Hill covering an area of 68,719 hectares and had initially worked in partnership with PT Pama Persada which was later replaced by PT Caraka Berkat Sarana.

PT Caraka later merged with PT Siwani Trimitra Tbk into a company which later became known as PT Mitra Investindo Tbk (MITI) while Antam`s contract with PT Caraka was eventually taken over by MITI.

The exploration contract was valid from June 11, 2004 through June 10, 2009.

"Now we are waiting for the result of the governmental investigation and the rechecking on the forest borders. Therefore, the future of the ANTAM-MITI cooperation is still unclear. Of course, we will adhere to the rules," Bimo said.

He said, the temporary cessation of exploration activity would not have a significant impact on the company`s income as granite was not its core business.

Under the cooperation agreement, Antam would get a S$0,35 fee on every ton of granite mined.

With a monthly granite production of 50,000 tons, the company would earn some S$17,500 per month or some S$210,000 per year from the granite mining venture.

Source: www.antara.co.id
Credit Photo: kerrycollison.net

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