West Wits Mining continues to focus on establishing an alluvial mining operation at its Derewo River Gold Project in Papua Province. The establishment of this project is now predicated on local government and law enforcement agencies successfully removing the illegal mining population from the proposed mine site.
All key stakeholders continue to maintain their support for the company and the government of the Paniai Regency has reaffirmed in writing of its plan to shut down illegal mining on the site.
Initial timelines agreed with government officials did provide for the company to already be on site. However, there were a number of matters which frustrated those timelines. These included both the Provincial and National Legislative elections and the Presidential election which redirected the focus of local law enforcement agencies elsewhere.
More recently an accident at an illegal mining site further downstream on the Derewo River claimed the lives of 15 illegal miners. Whilst this incident was tragic it has only further served to heighten the focus of authorities on the dangers associated with illegal mining and has hardened the resolve of local leaders to rid the area of such activities.
As part of the legal process to close down illegal mining within the Paniai Regency the Bupati, on June 17 issued formal orders to the Paniai Police chief (Kapolres) and the Paniai Mines Department to shut down all illegal mining activities within the Regency. However, given the considerable size of the illegal gold mining along the Derewo River and isolated nature of the region, the logistics of this clean-up plan are complex and will involve multiple agencies. It is pleasing to note that all illegal gravel operations located near Enarotali, the administrative centre of the Paniai Regency, have been closed under the Bupati’s instructions.
In anticipation of the mine site being cleared company personnel have been mobilized to site and all necessary maintenance of equipment and preparations for mining are complete. The airstrip constructed last year is in active use.
Furthermore the BKPM, the Indonesian investment promotion agency, has advised that it is monitoring the company’s activities in Papua and is aware of the recent instructions issued to close illegal mining. The company continues to coordinate with the all levels of Government.
The company has continued to engage with the relevant departments and officers, for each of the three regencies in which its exploration permits are located, to ascertain when each Clean and Clear list will be registered with the central mines department in Jakarta. The delays with the Clean and Clear list are affecting all rights holders in Papua.
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