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History of Mineral Exploration and Discovery in Indonesia

 

The devastation of World War II, and post-Independence fighting, virtually destroyed the mining industry, a situation exacerbated by the nationalization of all foreign enterprises between 1957 to 1960 such that by 1966 production of most metals had fallen to below pre-war levels.

 

In 1967, changes were introduced in Indonesia, and the New Order Government , to encourage foreign investment. Critical in this regard was the introduction of a Foreign Capital Investment Law and a complete revision of the Mining Law. Under these new laws, foreign investment was encouraged in the mining sector under what is known as the Contract of work system which is a comprehensive arrangement for development of mineral properties. Consequently, there has been a major resurgence of mining activity in Indonesia.

 

Mining History

 

West Java currently has a single commercial operating gold mine at Gunung Ponkor (6Mt @ 17g/t) and an advanced esploitation project at Ciemas (Mekathara Minerals). Other known areas of previous mining and exploration include Cikotok, Cikondang (PT Aneka Tambang), and Jampang (Mispec Resources Inc.). Traditionally, mining by local people, PT Aneka Tambang and the Dutch has concentrated on high grade quartz or sulphide veins containing gold. Within the jampang area local people pan for gold from alluvial terraces in the Cidadap River area and also from creeks near Waluran. In addition, hard rock mining by local people is undertaken at several localities.

 

Picture 1. Location Of Significant Mineral Deposits

 

Gold Facts:     ·    Annual production of 92 tones (3 million oz.), 7th world

·         Increase of 24% from last year

·         Current domestic consumption about 120 tones, 6th world

·         Consumption exceeds production by 34%