It was reported at its AGM in November 2003 that BHP Billiton had no plans to develop the Gag Island nickel project and that UNESCO was considering the Raja Ampat archipelago as one of four nominated marine World Heritage Sites in Indonesia. 

According to Antam’s enquiries, Gag Island is located on the western tip of the Raja Ampat islands and may lie outside of any eventual marine park.  The PT Gag Nikel Contract Of Work and thus development plans for Gag remain suspended.  In 1999, activities were suspended when previously designated production forests were designated as protection forest and open mining was banned in protection forests.  As at the end of December 2003, the Indonesian parliament was considering upholding previous agreements and allowing activities to recommence in protection forests. The World Heritage site selection process is still at the beginning stages.  It is not certain whether the World Heritage status will be declared, when it may occur, whether Gag Island will be included and what activities would be allowed within the declared area.  BHP Billiton has reaffirmed the group's commitment not to mine in areas of global environmental significance, but the current issue with regards to plans for Gag is waiting for the Indonesian Government decision on the forestry issue.

During this reporting period PTGN continued with its care and maintenance programme, community relations activities, maintenance of legal and regional authorities’ contacts and environmental monitoring programs on Gag Island.. There has been no further development work.  From the commencement of the project to the end of Q4 2003 1,306,510 man-hours of work had been performed with no lost time due to injury.  Expenditure for the quarter (on care and maintenance activities) totalled US $82,834.  Expenditure incurred and attributed to PTGN, before and since the signature of the Contract of Work is US$ 26 M.