CASE STUDY: SITE OCCUPATION, GOLD MINE, KALIMANTAN, INDONESIA

BACKGROUND.

  • Civil disorder in regional areas due to evolution from authoritarian Central Government to fully fledged democratic elections and incoming popularly elected Administration.
  • Regional autonomy creates crisis of expectation and demand for increased local community benefits from mining operations countrywide.
  • Large Australian goldmining operation disrupted by illegal mining activities, invasion of Contract of Works, and threats to expatriate and local workforce.
  • Police unwilling to intervene, some elements of security forces sympathetic to local community claims.
  • Increasing risk to operations, assets and staff.
GOLD MINE, KALIMANTAN, INDONESIA - OAMME.com
Illegal mining operations, Indonesia

RISK AND IMPACT

  • Cessation of all mining activities through ongoing protests, blockades of access routes and further direct action. Risk of complete cessation of operations through force majeure clause
  • Theft of gold ore, unsafe illegal mining activities, environmental damage through unsafe procedures (mercury contamination)
  • Poor liaison between local communities and regional security organs
  • Lack of political will to support foreign operations
  • Significant interruptions of mining operations costing millions of dollars in lost production, leading to investor concern and a diminishing share price.

PROJECT OUTCOMES

  • Implementation of Training Management System and additional security force development
  • Development of improved communications with local communities outlining strategic corporate planning leading to increased social and educational opportunities through increased revenue flows into the communities.
  • Mining operations continue, regional Governor instructs Police to implement direct action to remove all non-local illegal miners from the project site.