M

ining firm G-Resources is increasing its exploration activities in a bid to guarantee the availability of mineral reserves at the Martabe gold mine in North Sumatra. The company is upping exploration activities in three locations in South Tapanuli regency: Purnama, Tor Uluala and Barani.

'€œBased on our exploration in Martabe, we have found potential spots with economically viable mineral reserves that are ready to be mined,'€ said G-Resources senior manager for corporate communications Katarina Siburian Hardono on Tuesday, adding exploration at the three locations was running well.

Apart from the three exploration sites, the company had to stop exploration activities in Pahae Julu subdistrict, North Tapanuli regency, as it needed to wait for a license from the local government to operate.

According to Katarina, all the company'€™s gold and silver production at present is from mining activities at Pit 1/Purnama site.

'€œMartabe has set production targets of 230,000 to 250,000 ounces for gold and 2 million ounces for silver,'€ she said. '€œBut, the target can be revised in accordance with the market condition.'€

Katarina admitted that the company had set lower targets for this year compared to last year because of the weak gold price.

G-Resources government relations manager Septamto Inkiriwang said the company shipped its entire gold and silver production to the international market via Singapore after purifying the metals at state-owned mining company PT Aneka Tambang'€™s facility.

G-Resources, which has operated the 1,639-square-kilometer Martabe gold mine in Batang Toru, North Sumatra, since 1997, has a contract of work that will expire after 30 years.

The mine is 95 percent controlled by G-Resources Group Ltd., the remaining 5 percent by PT Artha Nugraha Agung, which is 70 percent owned by the South Tapanuli administration and 30 percent by the North Sumatra administration. (alz)