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ong Kong-listed gold producer G-Resources Group Ltd. (G-Resources) has called a stop to the installation of pipes to carry waste to Batang Toru River, South Tapanuli, North Sumatra, following protests from local residents.

Residents oppose the company’s plan to install a 2.7-kilometer waste pipe in the area, saying that the idea of disposing liquid waste into the river could pose a serious threat to the environment and their livelihoods.

During the recent protest, residents of Batang Toru district urged the company to dispose the waste straight into the sea instead of into the river.

The river is vital to people living in the area. Arifin Siregar, a resident, said the river provided them with fresh water to bathe and wash their clothes.

They use the river water for other daily activities, including cooking and fishing.

“We worry about possible pollution from the company’s waste. We are afraid that if the river becomes polluted, we would no longer be able to use its water anymore,” said Arifin.

The communications manager of G-Resources Martabe, Katarina Siburian, said the company had decided to halt the installment to prevent any trouble with residents.

Katarina said that the management would try to solve the problem by holding talks with residents.

On Friday, the management met representatives of residents to discuss the issue. However, no agreement was reached.

“Through talks, we hope we can reach an agreement so we can continue our work with the waste disposal installation,” said Katarina.

Katarina promised that waste from the gold and silver mine would not pollute the river as all waste would be treated at the company’s water treatment facility before being released into the environment.

Permits regarding the water treatment facility, as well as the Environmental Impact Analysis (Amdal), were issued by the South Tapanuli regent on March 13, 2008.

“Under normal conditions, the flow rate of water out of our installation to Batang Toru River is estimated at between 0.1 and 0.2 cubic meters per second, while the maximum flow rate is at 0.83 cubic meters,” Katarina explained.

“On the other hand, the water debit of Batang Toru River is around 50 cubic meters during the dry season, while during the rainy season the flow rate is between 200 and 700 cubic meters. Therefore, chances that the river would become polluted are very small,” she went on.

G-Resources began commercial production at the company’s gold and silver mine in Martabe in July after 15 years of exploration in the area.

The company expects the 162,900-hectare mine to produce 250,000 ounces — or 7.8 tons of gold per year — and 2 to 3 million ounces of silver per year.

The Martabe mine, estimated to have reserves of 7.86 million ounces of gold and 73.48 million ounces of silver, is currently operated by PT Agincourt Resources, a subsidiary of G-Resources.