A large group of armed protestors has set fire to three drill rigs and damaged five more at Vancouver-based junior mining company Southern Arc Minerals’ West Lombok project in Indonesia, the company announced this morning.
Copper-gold explorer Southern Arc (TSX-V: SA) said that, following a similar demonstration in May, it had hired both police and army representatives to provide additional security for its workers and to protect company property. (See “Indonesian protestors torch company’s drill rig” – BIV Business Today, May 17.)
Southern Arc stated that, when faced with yesterday’s “large group of armed intruders, security personnel focused on the safety of company employees and contractors.”
The company attributes the demonstrations “a fringe group of individuals who are participating in illegal mining activities in the region outside of Southern Arc’s properties.”
Southern Arc received its mining licence in January 2011. Since then, the company has “proactively engaged with local communities to discuss its exploration and development plans and address questions and concerns.”
Southern Arc said it’s currently working with its drilling contractor to replace the damaged equipment and believes full-scale drilling could resume in September.
“We will not let these recent events interfere with our objective of exploring and developing the West Lombok project to create value for local communities, the government of Indonesia and Southern Arc shareholders,” company CEO John Proust said in the release.
“Southern Arc will work with community leaders and government officials to find a long-term solution to these challenges. Clearly we need a multifaceted solution that involves enhanced security, comprehensive community engagement to increase local awareness, and collaboration with local authorities and community leaders to bring stability and security to the region.”
At press time, company stock was down more than 24% from yesterday’s close to $0.900. A company spokesperson was not available by press deadline.
Jenny Wagler
Twitter: JennyWagler_BIV
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Tags: Southern Arc Minerals, John Proust, mining