Derewo River project delayed by artisanal mining activities
Monday, March 26 2012 - 02:05 AM WIB
Australian-listed firm West Wits Mining Limited said that its preparations to commence mining operations of the placer deposit in the Derewo River, Papua Province, have taken longer time than expected due to its difficulty in removing the artisanal mining activities from the gold project.
The company said in a press statement on Monday that it had been several months since it started preparations but until now it could not yet start its planned alluvial operation on the project site, which comprised a 40 ha Exploitation IUP (or mining right) near to the Company?s 129,000 Exploration IUP.
?It was always understood that the removal of these people may present delays and recent efforts to repatriate this population by the local authorities whilst continuing have taken longer than anticipated,? the company said in the press statement.
The Company?s original interest in the project was heightened by the presence of an artisanal mining population who were clearly recovering large amounts of gold from sections of the placer deposit.
These artisanal operations appear to be highly productive and are supporting a supply chain which includes helicopter services, fuel and equipment supplies and general supplies extending from the remote location to Nabire. Elements of this supply chain have continued to frustrate the timeline by which the Company takes control of the identified site where the alluvial operation is to be established. Until the Company can achieve control of this site it cannot complete civil works for construction of its planned alluvial operation.
The Company has sought the formal assistance of local and regional authorities to secure the site on its behalf. West Wits is now also seeking the intervention of higher authorities within the Indonesian system who have previously expressed support for the project. WWI remains confident this matter will be resolved in the coming weeks.
?Whilst this delay has impacted the timeline for establishment of our initial small scale alluvial operation it will not impact the Company?s upcoming exploration programs. West Wits is proceeding with its planned exploration activities from an alternative site within its extensive Exploration IUP?s. The site is situated nearby the Company?s initial Wopogi gold target which delivered very prospective historical sampling data completed by Freeport,? it stated.
The newly appointed senior site geologist has been deployed in Papua and has completed an extensive review of the data set in preparation for the exploration program which will commence shortly.
The Company continues to have strong and ongoing support of the local Wolami people to commence alluvial operations as soon as possible as they see this project as a platform for significant economic, health and social advancement in the area. Conversely, almost all those involved directly or indirectly in the artisanal activities are from provinces outside Papua and therefore have no interest in the project.
Editing by Benget Besalicto Tnb.