KYM Minerals won?t proceed with Aceh iron sand mining project

By Romel S. Gurky

Malaysia?s KYM Mineral Sdn Bhd announced that it has decided to back down from an initial plan to develop iron sand mining project in Aceh due to the new government regulation which limits export of mineral raw materials.

KYM said in a statement that it has decided to terminate a Memorandum of Agreement with Indonesia?s PT Samana Citra Agung, the holder of the iron sand mining concession in Pidie Regency, Aceh.

?The board of directors of KYM wishes to announce that KYM Mineral Sdn Bhd has resolved to terminate the memorandum as it will not be economically feasible to proceed with the project after having due consideration of the regulation No. 7/2012 issued by the Ministry of Energy and Mineral Resources which prohibits mining companies from exporting mineral raw materials from Indonesia,? the company said in a statement.

Editing by Reiner Simanjuntak