New clashes hit Sihayo Gold’s Indon gold mine
10th Jul 2012
JULY 10 – Australian explorer Sihayo Gold CEO Paul Willis is due to hold meetings with police and local government leaders in North Sumatra, Indonesia today after weekend attacks on the company’s 75%-held Sihayo Pungkut exploration project.
Local media reports say four people were injured, one with gunshot wounds, when several hundred local residents clashed with security guards at the project site and set fire to the base camp.
Perth-based Sihayo Gold says police have arrested seven people, with more arrests anticipated.
The company blames the problems on local illegal artisanal miners, while the local reports say the residents were seeking damages for the use of their land and protesting about detrimental impacts of mining.
The clash is the second major incident at the mine, following a similar attack in mid-2011, although there have reportedly been several smaller clashes.
Sihayo Gold says no mine personnel were injured in the weekend attack, although the exploration camp suffered significant damage.
It says the meetings with police and government leaders will focus on operational safety and security for employees and further address the major issue of illegal mining activities within its Contract of Work area.
“The company believes this latest incident was provoked by those directly involved in the illegal mining activities and took place just weeks before the local government and police had planned to block the access of illegal miners to the CoW area,” it said.
Sihayo Gold sponsors local agricultural programs and says it will continue to seek support of the broader local community for its sanctioned mining activities and their sustainable economic opportunities for all stakeholders.
With the disruption occurring at the Sambung resource area, surface exploration work will continue 7km away at the Hutabargot epithermal gold prospect.
Sihayo Gold last month announced a JORC-compliant indicated and inferred resource at Sihayo‐Sambung of 16.4Mt at 2.7g/t containing 1,427,400oz gold.
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