Illegal mining and political unrest stall Aurora’s efforts

PERTH-based gold miner Aurora Gold Ltd has suspended some of its mining operations due to illegal mining and political uncertainty in Indonesia.

The company has reported a marked increase in illegal mining activities, agitation by landowners to re-open compensation claims and the emergence of community claims relating to ground access and control.

As a consequence, mining operations in the BBT complex at Mt Muro were suspended in June.

The company also suspended mining at Permata in mid-July after 100 people entered the open pit protesting compensation issues.

Negotiations are continuing to re-solve this matter and Aurora is working through the Department of Mines and Energy and other relevant government agencies to address these problems.

Mining is continuing at Kerikil. However, if the company is not able to establish mining access at the BBT and PBH complexes in the short term, lower production is anticipated in the third quarter.

“There appears to be some reticence, perhaps on account of the continuing uncertainty, in maintaining the levels of law and order which had been experienced previously,” said Aurora managing director Ian Burston.