GOLD OPERATIONS UNAFFECTED
2008 PRODUCTION TARGET OF GOLD UNAFFECTED
Jakarta, 20 September 2008 – PT Antam Tbk (ASX – ATM; IDX – ANTM) announces that it resolved the vandalism activities which were caused by the illegal miners at the Antam’s Pongkor gold mining operations on Friday, 19 September 2008. Mining and gold processing activities were unaffected following the incident.
On Friday, 19 September 2008, Antam with the assistance of the Indonesian law enforcement conducted security operations on illegal mining activities that escalated prior to Eid al-Fitr by initially interrogating 44 alleged illegal miners. Following the interrogation, 700 illegal miners demanded the release of their colleagues and tried to set fire and smashed windows to the company’s buildings, and set fire to one vehicle owned Antam and another vehicle owned by Antam’s contractor. No fatalities occured.
Following persuasive and social approaches, all parties reached an agreement where the alleged illegal miners were released with their commitment to discontinue illegal mining activities.
Antam attempts to decrease the numbers of illegal miners through various approaches, such as the socialization of the dangers of using mercury and the hazards of underground mining. Mercury is a toxic substance dangerous for the environment.
Antam has been improving its strategy to reduce illegal mining activities. The strategy has a three-pronged approach, which includes better community development programs, socialization of applicable laws and regulations, and improved law enforcement. However, illegal mining activities continue near some parts of Antam’s Pongkor gold mine. Currently, the number of illegal miners is estimated at hundreds of people, much lower than 1998-1999, when there were thousands of illegal miners.