JAKARTA, Oct 1 (Reuters) - G-Resources Group Ltd has halted operations at its $1-billion Martabe gold mine on the Indonesian island of Sumatra, after a dispute with local residents over the installation of a water discharge pipe, the Hong-Kong listed miner said on Monday.
The gold mine was the focus of a demonstration last month that blocked entrances to the project, and talks have so far failed to resolve the issue, Chief Executive Peter Albert told Reuters.
“The company does not have unlimited funds and cannot sustain the workforce, operations and other programmes without the mine operating,” he said in a statement. “We have no choice but to save every dollar that we can to protect the company and to enable a restart once this issue is resolved.”
Hong-Kong listed G-Resources, which is backed by Mount Kellett Capital and BlackRock Inc, bought the Indonesian mine in 2009, began producing gold in July, and had targeted output of 250,000 ounces from next year. (Reporting by Michael Taylor; Editing by Clarence Fernandez)