Friday, 3rd June 2005 (2599 views)

Norway's Guinor Gold Corporation has said that it will proceed with the acquisition of a plant from gold miner PT Kelian Equatorial Mining (KEM) after the Indonesian government turned down an offer to buy the deposit.

Previously Guinor had signed a sales and purchase agreement to acquire the plant and this was subject to a number of conditions including the government rejecting an offer to buy the facility.

KEM, a subsidiary of Anglo-Australian mining giant Rio Tinto, ceased operations following depletion of its gold deposits in February.

In a statement, Guinor said: "Guinor is pleased to announce that PT Kelian Equatorial Mining has received the appropriate Indonesian government rejections to allow the purchase of the Kelian Gold plant from KEM."

The company has not yet disclosed the value of the deal.

KEM ran a gold mine in the West Kutai regency in East Kalimantan where it mined an estimated 14 tons of gold per year.

 

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