25 Years of Mineral Exploration and Discovery in Indonesia

ELSEVIER
Journal of Geochemical Exploration 50 (1994) 13-90
JBURHALO[
GEOCHtICAL
EXPLORATION
25 Years of mineral exploration and discovery in

Indonesia
Theo M. van Leeuwen
P.T. Rio Tinto Indonesia, Cilandak Commercial Estate, Kotak Pos 7564/CCE. Jakarta 12075, Indonesia
( Received 4 September 1992; accepted after revision 26 October 1993)
Abstract
This paper traces the history of mineral exploration in Indonesia between 1967 and 1992, and
discusses various technical aspects, such as area selection, exploration and discovery methods, and
significant geologic features of the more important new discoveries.
Exploration activity over the past 25 years can be divided into four main phases. Phase I ( 19671976) mostly involved investigations of mineral prospects and districts previously identified by the
Dutch. These investigations resulted in many discoveries, including: a major copper-gold district
(skarn-porphyry copper) in Irian Jaya, where exploration is still in progress (resources identified to
date: 28 Mt Cu and 2,700 t Au); large nickel resources in Eastern Indonesia ( 13 Mt Ni); significant
onshore and offshore tin resources in the Sumateran tin belt (0.13 Mt Sn); and large but low grade
bauxite deposits in West Kalimantan ( 300 Mt A1203). Of the eight Contracts of Work signed between
1967 and 1972, six reached the mining stage. Phase 2 ( 1970-1975) consisted of an extensive porphyry
copper search in the Sunda arc, the western arc of Sulawesi and the central belt of Irian Jaya. Best
results were obtained from northern Sulawesi, where follow-up between 1976 and 1982 identified
three potentially economic copper-gold deposits ( 1.7 Mt Cu and 140 t Au) and one subeconomic
molybdenum porphyry system ( 0.8 Mt Mo). During Phase 3 ( 1981-1988 ) extensive coal exploration
in South and East Kalimantan delineated over 5,000 Mt of coal of varying rank and quality, including
1,500 Mt as measured reserves in 17 deposits, eight of which have been developed to date. Phase 4
(1984-1990) involved a major gold rush, focused primarily on the Cenozoic magmatic belts of
Kalimantan, Sulawesi, Moluccas and the Sunda arc. Over 80 primary and alluvial gold prospects were
drill tested. Five of these were brought into production (two alluvial deposits, two new hard rock
discoveries and one Dutch mine), containing approximately 135 tonnes of mineable gold, and several
other projects are under development or undergoing feasibility studies. Total geological resources
identified to date are estimated to contain about 700 tonnes of gold. Exploration during phase 4 also
resulted in several gold-rich porphyry copper discoveries, including a major deposit in Sumbawa ( 2.7
Mt Cu and 250 t Au). Intermittent exploration for uranium, diamonds and lead/zinc since 1969 has
been largely unsuccessful.
Exploration is now passing to the next phase, which is likely to be multi-commodity in nature with
0375-6742/94/$07.00
SSDI0375-6742(93)
1994 Elsevier Science B.V. All rights reserved

E0050-7
14
T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90
a strong focus on gold, copper and coal. A number of deposits outlined during earlier phases will be
developed.
The unprecedented high level of mineral exploration activity over the past 25 years can be attributed
to Indonesia's mineral prospectivity and favourable investment climate. Given a continued competitive commercial environment and sustained commodity prices, the next 25 years should see further
strong development of the country's mineral resources.
1. Introduction
The minerals industry in Indonesia has had a long and checkered history. Gold and silver
have been worked for over 1,000 years, and records of tin and diamond production date
back to the 18th century. The foundations of the present-day industry were laid by the
Dutch, who undertook exploration and development between the 1840s and 1930s. During
this period, Indonesia became the world's second largest producer of tin, as well as an
exporter of small amounts of gold, silver, nickel, bauxite, and coal (Fig. ! ). However, the
ravages of World War II and the post-war independence fighting left the mining sector in
bad disrepair. The situation was further aggravated by the nationalization of all foreign
enterprises between 1957 and 1960. By 1966, production of most minerals had fallen to
below pre-war levels.
In 1967, the New Order Government under President Suharto carried out sweeping
changes, which included the introduction of a Foreign Capital Investment Law and a revision
of the Mining Law. Under these new laws foreign investment was permitted in the mining
sector under a Contract of Work (COW) system, a "from the cradle to the grave" type
arrangement, which had earlier been used in the oil industry. In order to speed up mineral
exploration, the Government invited international tenders for the development of certain
areas with tin and nickel potential, and shortly thereafter 53 blocks were opened for large
scale "general mineral exploration" ( Sigit, 1972). This heraldeda period of unprecedented
mineral exploration activity during the ensuing 25 years.
The industry has developed in four major, partly overlapping phases. The first involved
exploration of mineral occurrences and regions previously identified by the Dutch, which
commenced in 1967 and was largely completed by 1976. During phase 2, between 1969
and 1975, large scale reconnaissance surveys for porphyry copper deposits were undertaken.
Detailed investigations of several prospects were carried out in the late 1970s and early
1980s. The porphyry copper search was followed by an intensive coal exploration campaign
(phase 3) that began in 198 t and peaked around 1988. Phase 4 was part of the worldwide
gold exploration boom of the 1980s, beginning in 1984 and continuing until 1989/90, when
the stock market crash of 1987 and lower gold prices began to take their effect on the
exploration industry.
The present paper is a revised and updated (September 1993) version of a paper presented
at the 1991 Indonesian Mining Conference (Van Leeuwen, 1993). It traces the four main
phases of exploration and also describes some less intense exploration activity (i.e., for
diamonds, uranium, and lead/zinc). Area selection, exploration and discovery methods are
discussed together with significant geologic features of the more important new discoveries.
-10 o
"oo
TIN
40
I6
376
150
million tonnes
mi/hon tonnes
tonnes
tonnes
PRODUCTION:
;oo
;oo
o
,02
1710 -commencement of production
Fig. 1. Significant mineral production centres in Indonesia pre-1949.
Coo/
COAL
Silver
Gold
Tin
BAUXITE
TOTAL
~- N I C K E L
0 DIAMOND
A GOLD/SILVER
[]
oo
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BINTAN
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Lesse~i~
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Fig. 2. Map showing geographic locations mentioned in the text.
" ~
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T.M. van Leeu wen / Journal o f Geochemical Exploration 50 ( 1994 ) 13-90
17
The evolution of the COW system is also briefly discussed. Geographic localities mentioned
in the text are shown in Fig. 2.
In order to put these activities in historic context, a brief outline of the relevant Dutch
work is given for each. Comprehensive summaries of Dutch exploration and mining have
been presented by Van Bemmelen (1949), Ter Braake ( ! 944) and Van der Ploeg ( 1945 ).
Detailed information can be found in the "Jaarboek van het Mijnwezen" (Mining Year
Books), published between 1872 and 1939.
For the post-Dutch period of mineral industry development the reader is referred to a
collection of papers by Sigit (1989), which includes a comprehensive review of policies
and legislation, the Indonesian Mineral Development Digest published by the Indonesian
Mining Association in ! 988, and papers by McDivitt (1989) and Makarim ( 1989 ). Detailed
analyses of the early COWs have been presented by Beals and Gillis (1980) and Mikesell
(1983).
Information presented in this paper has been drawn from a number of sources, including
published papers, mining year books (1970-1992) published by the Department of Mines
and Energy, company relinquishment and termination reports on open file, unpublished
reports and other information kept in the files of P.T. Rio Tinto Indonesia, stock market
reports, mining magazines, and personal communications with many colleagues in the
industry. With the exception of published papers, these sources are in most cases not quoted.
The paper is largely restricted to the exploration activities by foreign companies, which
have dominated the industry, and, with a few exceptions, does not discuss the work done
by Indonesian companies and institutions, foreign agencies, etc. Neither does it deal with
exploration for mineral sands, chromite, manganese, and industrial minerals.
2. Phase 1: following in the footsteps of the Dutch

In 1967, when Indonesia was opened to foreign investment in mining, the first companies
that came to the country were primarily interested in prospects and mineral districts identified
by the Dutch, including the Ertsberg copper prospect in Irian Jaya, nickel laterite and
ultramafic occurrences in eastern Indonesia, the Sumatera tin belt, and bauxite occurrences
in western Indonesia. Between 1967 and 1971, one First Generation COW for copper
(Ertsberg area) and seven Second Generation COWs for nickel (3), tin (3) and bauxite
( I ) were signed (Fig. 3).
The only First Generation COW was signed by Freeport Sulphur in 1967 and contained
the following major provisions: ( 1) the term of the agreement was for 30 years ( "the
operating period") following the initiation of commercial production, which was preceded
by an "exploration period" of two years, a "feasibility study period" of six months, and
a ' 'construction period" of three years; (2) the company received a tax holiday for the first
three years after the beginning of production and a reduced corporate income tax rate of
35 %; (3) it was exempted from royalties on copper and gold; and (4) it was given full
control and management of all matters related to the exploration and mining operations.
The contract was renegotiated between 1974 and 1984. Changes included a reduction of
the tax holiday from three years to one year, the sale to the government of 8.5% of the total
equity shares in Freeport Indonesia at book value, and payment of land rent and royalties.
0o
110
I,
?.
7,
~.
$.
i
Ertsberg/Grasberg
Pomolao
Soroako
Cyclops Mrs.
Waigeo
/
/J
(,
120
6.
T.
8.
9.
I0.
Gag 1sIond
Gebe Island
Tenjung Buli
Kukuson Mrs.
Sungoi Duwo
I
"/Z'
/,~:~:.::i:"
!:Z:!'?:(:~
~,,~..:..:':..'~::
.!~:::,~.,:~,~;~
130
'ig. 3. The locations of copper, nickel, tin and bauxite deposits and areas investigated during phase 1.
Undeveloped resource
Mine
BAUXITE
TIN
NICKEL
COPPER
3ONTRACT OF WORK FOR:
~0
If.
12.
13.
14.
15.
800
I
Sebuku
Kelopa Kompit
Koba
Cebio (Pulou Tujuh)
Toyan
:M
O0
I
140
.z
2.
k..
19
The Freeport agreement attracted other mining companies to Indonesia, even though the
terms of the Second Generation COWs were somewhat more onerous. Major differences
included: (1) abolishment of the tax holiday; (2) increase in corporate tax rates; (3)
payment of royalties, land rent and some other taxes; (4) addition of a two year "general
survey period" and extension of the exploration and feasibility study periods by one year
and six months respectively; (5) specification of the percentage of Indonesians to be
employed; and (6) obligation to offer up to 20% of the equity shares to Indonesian nationals
over a ten year period.
2.1. Copper (Ertsberg District)
The Dutch found copper in Sumatera, Java, Sulawesi and Timor, but none of these
occurrences were of economic significance. Far more important was the discovery of
Ertsberg ( " o r e mountain") (Fig. 3) by Jean Jacques Dozy, a young petroleum geologist,
while climbing the highest, snow covered mountains in Irian Jaya in 1936. The orebody
formed a spectacular outcrop, standing about 140 m above ground level in glaciated terrain
at an altitude of 3,600 m. Dozy (1939) reported on his trip and included a brief reference
to Ertsberg, noting its high copper content and traces of gold. Because of World War II and
its aftermath, the report went unnoticed until 1959, when Forbes Wilson, manager of mineral
exploration for Freeport Sulphur, saw it during a visit to Holland. Immediately recognizing
the potential of Ertsberg, he mounted an expedition within a year to sample the deposit. A
fascinating account of this expedition, which took place under extremely difficult conditions,
is given by Wilson ( 1981 ) in his book "The Conquest of Copper Mountain".
Results of the investigations surpassed all expectations, showing Ertsberg to be the
world's largest copper orebody exposed at the surface. Wilson recommended immediate
further studies of the deposit, but technical and political problems delayed a detailed evaluation of the deposit for seven years. By 1969, a helicopter supported drilling program had
outlined 33 Mt at 2.5% Cu and 0.75 g/t Au and a preliminary feasibility study had been
completed. Construction of an open pit mine (named "Gunung Biji", the Indonesian term
for Ertsberg) began in 1970 and production started in late 1972.
Exploration drilling during 1975-1976 encountered a second orebody, named Gunung
Biji Timur (Ertsberg East), located 1.3 km to the east of the original discovery. The area
had already been noticed during the 1960 expedition as a heavily malachite-stained limestone cliff (Wilson, 1981 ). Subsequently, two ore zones were discovered below this deposit,
viz the "intermediate ore zone" (IOZ) and the "deep ore zone" (DOZ), and a third
deposit called Dom (meaning "cathedral" in Dutch) was found 1 km to the south. Drill
testing of the Big Gossan deposit, which was initially investigated in 1974, began in 1991.
Reserves outlined to date and development status for each of these deposits are given in
Table 1.
The four deposits (Katchan, 1982; Soebagio and Budijono, 1989; Mertig et al., 1994)
are all hosted in skarned sediments of Mesozoic to Tertiary age near a Pliocene intrusion
containing weak porphYrY copper-style mineralization. They are unusual among major
copper-gold skarn deposits in being associated with magnesian rather than predominantly
calcic silicates (Sillitoe, 1994). Ertsberg occurs as a nearly-engulfed block of skarn suspended in the intrusion, and Ertsberg East/ IOZ/DOZ and Dora are located along the
20
Table I
Copper and gold reserves of the Ertsberg district
Deposit
Reserves
Mt
Comments
Cu (%)
Au (g/t)
Gunung Bijih
(Ertsberg)
33
2.27
0.47
Mined by open pit methods from 1972

to 1989; 3 Mt left.
Gunung Bijih Timur

IGBT)
54
2.03
0.66
Block cave operations commenced

in 1980; 2 Mt left.
1OZ
27
1.68
0.56
Production will start in 1994 by induced

and sub-level caving. Reserves open to
east, west and down dip.
DOZ
25
2.30
0.99
Open stope production started in 1988.
Dora
31
1.47
0.42
Has not preceeded beyond the early

development stages; will be mined by
block caving methods.
675
1.45
1.87
Open pit mining began in December

1989; about 30 Mt mined to date.
Grasberg
Big Gossan
In exploration stage (drilling and

underground). Outlined resource:
12 Mt @ 4% Cu, 1.9 g/t Au.
Data source: P.T. Freeport Indonesia.

Reserves as of January, 1993 (including historical production).
intrusive contact, whereas Big Gossan is a distal skarn controlle d by a steeply-dipping fault
zone. The Ertsberg East/IOZ/DOZ deposit has a vertical extent of 1,500 m, making it one
of world's largest copper-gold skarn ore bodies.
The original composition of the sediments (predominantly dolomitic limestones and
sandstones) and their depth of burial at the time of skarn formation influenced the type of
skarns developed. This in turn largely determined types of ore formed and the distribution
of ore sulphides, which consist predominantly of bornite and chalcopyrite, and largely
postdate the skarn formation.
One of the most recent discoveries, and arguably the most exiting one, is Grasberg,
located 2.2 km northwest of Ertsberg, which differs from the other deposits in being a
porphyry-type copper-gold deposit. The name Grasberg ("Grass Mountain") was given
by Dozy (1939) to a "rather smooth grass-covered mountain, which forms a striking
morphological element amidst the limestone mountains". Interestingly, Dozy's report contains several clues as to the presence of porphyry-style mineralization: (1) disseminated
sulphides including chalcopyrite are described from a diorite sample; (2) several other
samples are reported to contain abundant secondary biotite; and (3) Dozy noticed that the
water of a creek draining Grasberg had a very pronounced iron taste.
T.M. van Leeuwen /Journal of Geochemical Exploration 50 (1994) 13-90
21
Freeport geologists investigated the occurrence in the mid-1970s. Outcrop samples

yielded significant gold results, but copper values were very low. The possibility of porphyry
copper-style mineralization occurring at depth was recognized, but no further work was
undertaken at the time, as there appeared to be little chance of an enriched chalcocite blanket
being present because of recent glaciation. A primary deposit was of little interest, because
copper grades were expected to be less than 0.8% (as was the case for other known porphyry
deposits in the region), and gold would not be a significant credit at the prevailing prices.
In the mid-1980s, Freeport's geological staff re-examined the outcrops at Grasberg. This
time it was decided to drill test the near-surface gold potential and the deeper copper
potential. The first vertical hole, drilled in early 1988, intersected 600 m averaging 1.65%
Cu and 1.49 g/t Au: a world-class ore body had been discovered. Production commenced
within two years. The geology of the deposit is discussed below together with that of other
porphyry copper deposits in Indonesia.
Freeport' s exploration has been a remarkable success story. To date a total in-situ resource
of approximately 28 Mt Cu and 2,700 t Au ( including 13 Mt Cu and 1366 t Au in mineable
reserves; Table 1 ) has been found in what is one of the most remote and underdeveloped
parts of the world. The bulk of the gold is contained in Grasberg, which has the largest
published gold reserve of any single mine in the world. By 1996, the existing mines will
produce 90,000 tpd, a staggering increase of 1,350% since production started in 1972, with
annual production exceeding 40,000 t Cu, 35 t Au and 70 t Ag.
2.2. Nickel
Geologists of the Netherlands Indies Geological Survey who investigated the interior of
eastern Sulawesi in 1909 and 1910 were the first to describe the ophiolite formations of this
region and to recognize their nickel potential. They recommended a systematic survey,
which was commenced by the Dutch government in 1916. Significant deposits of nickel
laterite were discovered, but mostly of an uneconomic grade at the time (i.e., < 3% Ni).
Small-scale mining was started by a private Dutch company at Pomalaa (Fig. 3) in 1937
and was continued by the Japanese during the Pacific War. Exploration, mining and export
of nickel ore was resumed in 1959 by a private Indonesian company, which two years later
was taken over by the Indonesian Government. Since 1968, the state mining company P.T.
Aneka Tambang (ANTAM) has been operating the mine.
Following the transfer of sovereignty in 1949, the Dutch shifted exploration activities to
Irian Jaya, which remained under their rule until 1963. Nickel laterites were discovered in
the Cyclops Mountains in 1949 and on Waigeo and neighbouring islands in 1956. Based
on government-sponsored follow-up work in both regions, a group of Dutch companies
together with the US Steel Corporation formed a company in 1960 to explore and develop
these deposits. Preliminary investigations were promising, but local political conditions
precluded further work at the time.
In 1967, the Indonesian Government called for bids for the exploration and development
of areas of nickel laterite and/or ultrabasics identified by the Dutch. Three groups successfully negotiated COWs, viz. Pacific Nickel Indonesia (PNI, a consortium headed by US
Steel), INCO and INDECO (a Japanese consortium) for areas in Irian Jaya, eastern Sulawesi and northern Moluccas respectively (Fig. 3).
22
Table 2
Nickel resources of Indonesia
Deposit
Resource
Comments
Soroako
180 Mt @ 1.67% Ni (ox and sill

(1972) ; probable-proven
reserves in 1993:78 Mt @
1.90% Ni.
Dutch prospect. Exploration by INCO

during 1969-1975 including 10.600 m
of drilling; costs: US$ 27 (80) million.
Production 1978-1992:343,700 t Ni.
Pomalaa
129 Mt @ 1.4% Ni (ox and sill,

including proven reserves
(1992) of 4 Mt @ 2.40% Ni (sill.
Old Dutch mine; operated by ANTAM

since 1968.
Production 1960-1992:312,000 t Ni.
Tanjung Buli
( Halmahera )
18 Mt @ 2.61% Ni (sill (1992).
Gebe
20 Mt @ 2.60% Ni (sill and

66 Mt @ 1.25% Ni (ox), including
probable-proven reserves of 10 Mt
@ 2.60% Ni (sill and 7 Mt @ 1.65%
Ni Cox) (1992).
Moluccas deposits explored by INDECO

involving 35,000 m of drilling. Gebe
selected for detailed studies. Total
expenditure 1969-1977: US$ 9 (26)
million. Gebe subsequently explored and
mined by ANTAM; production 1987-1992:
247,560 t Ni. Tanjung Buli explored by
ANTAM since 1981.
Obi
88 Mt @ 1.2% Ni Cox) (1977).
Sulawesi
Moluccas
lrian Java
Waigeo
104 Mt @ 1.41% Ni Cox and sill

(1972)
Cyclops Mountains
53 Mt @ 1.43% Ni Cox) (1972).
Gag
262 Mt @ 1.51% Ni Cox and sill

(1974), including 79 @ 1.61% Ni (ox)
and 19 Mt @ 2.35% Ni (sill (1990).
All 3 deposits investigated by the Dutch.

Subsequently evaluated by PNI; Gag
selected for detailed studies; 17,000 m
drilling; total expenditure: US$ 56 (133)
million. Taken over by ANTAM in 1982.
S. Kalimantan
Kukusan and S. Duwa

(1974)
Sebuku

(1974)
Explored by ANTAM during 1972-1974.

Laterites Fe-rich.
Data sources: Prijono, ( 1979); Slamet, ( 1991 ); INCO ( 1993); ANTAM (1993).
Abbreviations: ox = oxide; sil = silicate; Mt = million dry tonnes.
Expenditure: figures shown between brackets are in 1992 dollars.
Resource: year of resource definition shown between brackets.
E x p l o r a t i o n b y t h e t h r e e c o m p a n i e s f o l l o w e d a s i m i l a r p a t t e m ( R e y n o l d s et al., 1973;
Harju, 1 9 7 9 ) : aerial p h o t o g r a p h y , in I N D E C O ' s c a s e c o m b i n e d w i t h a e r o m a g n e t i c s , w a s
followed by ground reconnaissance of areas with favourable geology and morphology
selected on the basis of literature research and photogeological interpretation. First priority
23
targets were areas of ultrabasic rocks covered by little dissected old land surface. Hand
augers and winkie drills were extensively used during this stage to determine quickly the
near-surface extent of the laterites. This was done in conjunction with geologic mapping to
determine, the character of the laterite surface, the size and distribution of areas of outcrop
and boulder fields, and the nature of the bedrock. If a deposit had economic potential, further
drilling was done with larger mechanical augers and truck mounted rigs. Test pits were used
principally to obtain density data and detailed information concerning the laterite profile.
In a relatively short time all three companies identified substantial nickel iaterite resources
in a number of deposits, which contain nickel-silicate ore and/or generally lower grade
nickel-oxide ore (Table 2). The geology of one of these deposits, Soroako, has been
described by Golightly (1979). Most of the deposits give rise to distinct vegetation anomalies, which can be readily identified by remote sensing methods (Taranik et al., 1978).
Wahyu and Slamet (1992) note that at Gag the thickness of the laterite profile can be
estimated from the degree of stunted growth and sparseness of the vegetation.
In 1973, INCO commenced construction of a mine at Soroako, and PNI and INDECO
were about to develop the Gag and Gebe deposits respectively, when the first oil crisis took
place. The escalation in oil prices had a dramatic impact on the viability of all three projects.
The situation was further aggravated by the deterioration of the international nickel market,
commencing in 1975. INCO countered the sharp increase in energy costs by building a
hydroelectric plant and tripling annual production capacity to 45,000 tonnes of nickel matte.
However, the company had to wait until 1988, following an improvement of the nickel
market, to see its operations become profitable.
For Gag and Gebe no alternative energy sources were available. Both PNI (Havryluk,
1979) and INDECO carried out several feasibility studies, but invariably the conclusion
was that it was not economical to process the ore on site. The Gag project studies showed
an escalation in costs from US$ 700 million in 1978 to a staggering US$ 2 billion (2.75
billion in 1992 dollars) in 1981. As the Government did not allow export of unprocessed
ore by foreign-owned companies, INDECO withdrew in 1977, followed by PNI in 1982.
Their areas were subsequently assigned to ANTAM, which has been exploiting the Gebe
deposit since 1979. One of the other INDECO areas, Teluk Buli on Halmahera (Fig. 3),
explored by ANTAM since 1981, has reached the feasibility stage. Plans initiated in 1988
by ANTAM and Queensland Nickel to produce up to 4 Mt of ore at Gag were abandoned
in 1992, based on the results of a detailed feasibility study.
Nickel resources identified to date amount to approximately 1,000 Mt with a total nickel
content of 13 Mt (Slamet, 1991 ) (Table 2), making Indonesia the fifth largest source of
nickel in the world after New Caledonia, Cuba, Canada and the USSR.
2.3. Tin
Tin mining is one of the oldest of Indonesia's industries. As early as 1710, the Dutch
East Indies Company bought tin from the Sultan of Palembang, who recruited workers from
southern China for his mines on Bangka, one of the Tin Islands located to the east of
mainland Sumatera. In 1856, the mines became the property of the Dutch Government+
which operated them until the Japanese overran Bangka in February 1942. On the adjoining
island of Belitung, the native population managed to conceal the presence of tin from the
24
T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13 90
Dutch until 1851, and in 1887 tin mining operations also began on Singkep Island. Early
Dutch mining activities were restricted to alluvial deposits, and it was not until 1906 that
hard rock mining started at Kelapa Kampit on Belitung, followed by offshore tin mining in
1921. It is estimated that during the period 1710-1942 a total of 1.5 Mt of tin was produced.
During the Pacific War, the Japanese mined some alluvial deposits. Soon afterwards the
Dutch resumed operations until 1958, when their concessions expired. Since that time the
Government has been the main tin producer through its wholly owned company PN Tambang Timah. Following an international tender, three COWs were awarded between 1968
and 1971, viz. to Billiton, BHP and Koba Tin (CSR/Boral; since 1988 part of the Renison
Goldfields group).
Billiton and Koba Tin's targets were offshore and onshore placer deposits. All offshore
and large parts of the onshore placers in Indonesia (Batchelor, 1979; Aleva, 1973, 1985)
are paleoplacers, which have been protected against erosion by a cover of marine, littoral
or paludal sediments. They were deposited and partly reworked from the Late Miocene to
recent times. During this period there have been three major phases of erosion and sedimentation, characterized by distinctive climatic regimes, and accompanied by a progressively rising sea level that eventually submerged the present-day shelf platform area
surrounding the Tin Islands.
There are three distinct types of cassiterite placers: ( I ) residual eluvial concentrations
on interfluves and valley side slopes; (2) para-allochthonous placers, which directly overly
the mostly weathered country rocks of valley bottoms; and (3) allochthonous alluvial
deposits interbedded in the sedimentary valley fill. Type I and 2 placers are directly related
to nearby primary mineralization associated with granite intrusions, whereas type 3 deposits
consist primarily of reworked type 1 and 2 material.
Billiton selected an offshore area centred on the Pulau Tujuh islands ( Fig. 3 ), in the hope
that the known ( in part tin-bearing) granites on these islands and on northern Bangka were
linked in the intervening offshore area (Bon, 1979). A second area was chosen off the
southwest coast of Kalimantan. Exploration in these remote and unprotected offshore areas
was made possible by the development of a new exploration tool, named the "Sonia'"
acoustic profiler, and by the use of two drill barges that contained some novel features
enabling drilling operations to be carried out under rough weather conditions and in water
deeper than 6 m (Bon, 1979).
The company adopted a three-stage exploration strategy. Firstly, the COW areas were
scouted with Sonia to detect places where granitic basement would be present at a dredgeable
depth. The selected areas were then profiled on a dense grid in order to detect buried valleys.
Finally, the tin content of these valleys was tested by drilling.
Results of the reconnaissaince stage did not support the hypothesis of a continuous granite
body between Bangka and the Pulau Tujuh islands, and consequently follow-up work was
largely restricted to the latter area. By the end of 1976, several small to medium-sized tin
deposits had been discovered around Cebia island, at a total cost of more than US$ 24 in
1992 dollars. They were thought to be of sufficient size and grade (on the order of 70 Mm ~
at 29 g/m ~ Sn) to justify a large dredging operation (Dieperink, 1979). However, as
operations progressed, it became apparent that both grade and volume had been overvalued.
This rendered the project uneconomic and resulted in its closure in late 1985, at which time
a total of only 5,800 t of tin had been produced.
25
Koba Tin's principal target was alluvial tin in an old Dutch mining area on east Bangka
(Fig. 3). Exploration commenced in late 1971, and trial mining was undertaken in 1973 to
confirm old Dutch geological records and the company' s own drill results. Mining operations
began in 1974 with gravel pumps, and since 1977 have also involved dredging. By the end
of 1992, 69,000 tonnes of tin had been recovered and proven reserves were 39,000 tonnes.
The company's exploration (using seismic) in the east Bangka offshore area was less
successful, partly because it targeted young V-shaped valleys and depressions that were
unprospective, having been filled with muds during a transgressive phase younger than the
main epoch of tin placer genesis. Better results could have been obtained had seismic
profiles been interpreted to identify gravelly piedmont fan facies at the base of granite scarps
( type 1 ) or gravelly fill in bedrock valleys draining granitic terrain (type 2). Another lesson
learnt was that offshore placers can have offshore sources entirely unrelated to onshore
mineralization ( Batchelor, 1979, 1983 ). Total exploration costs for the onshore and offshore
programs amounted to US$15 million in 1992 dollars.
BHP' s COW covered the whole of Belitung island (Fig. 3 ) and was for primary tin only.
Primary tin mineralization on the Tin Islands ( e.g., Adam, 1960; Omer-Cooper et al., 1974:
Sujitno et al., 1981; Van Wees and De Vente, 1984; Schwartz and Surjono, 1990a,b) is, at
least in part, related to Triassic granites intruded into Permo-Carboniferous sandstones and
shales with minor interbedded tuff and chert. Deposit types include: ( 1 ) greisen-bordered
vein swarms and greisen in granite, commonly in association with tungsten; (2) stratabound
"bedding-plane veins", which occur along sheared contacts between sedimentary beds of
different competence and are characterized by the presence of abundant magnetite and
pyrrhotite with lesser pyrite and base metal sulphides; (3) fault/fissure veins within the
sedimentary sequence, which contain fluorite and tourmaline but no magnetite, and generally
only minor sulphides; and 4) quartz stockworks ( + tungsten) in sandstone.
BHP's exploration program had as objectives to examine the Kelapa Kampit mine and
explore for possible extensions with a view to re-opening the mine, and to search for other
primary tin deposits. On the basis of a literature study, regional exploration techniques were
selected, including aerial photography ( for location purposes and structural interpretation ),
and airborne magnetics (because of the known association between magnetite and tin in
bedding-plane veins). Follow-up targets consisted of known primary deposits, areas shedding alluvial cassiterite, and aeromagnetic anomalies. They were investigated by using
ground magmatics, soil sampling ( Sn and As), and limited SP and IP, followed by trenching
and pitting, and subsequently by drilling and/or excavation of adits (Omer-Cooper et al.,
1974).
BHP's exploration, carried out between 1971 and 1976 at a cost of US$ 5 million in 1992
dollars, located several new areas of primary tin mineralization on the island. However, the
most significant find was made within the Kelapa Kampit mine area itself, consisting of a
tin deposit of 350,000 tonnes averaging 1.5% Sn, known as the Adit 22 or Nam Salu orebody
(now largely mined out). The deposit is hosted by a steeply dipping tuffaceous horizon
(named " N a m Sa|u Horizon") within the sedimentary formation. This horizon contains
varying amounts of magnetite, pyrrhotite, pyrite, ilmenite, and siderite. It has a considerable
strike extent, as indicated by aeromagnetic data and drilling. The discovery hole was sited
on a combined magnetic low and Sn-in-soil anomaly to test the hypothesis that the Nam
26
Salu horizon might contain volcanogenic-style mineralization where a change from oxide
(magnetite) to sulphide facies occurred.
The Nam Salu tin mineralization, the bedding-plane veins at Kelapa Kampit, the Selumar
deposit (Van Wees and De Vente, 1984) and some other occurrences on Belitung exhibit
geological characteristics similar to those recognized in exhalative massive sulphide deposits, including well-bedded, concordant, stratabound or stratiform character, sharp contacts,
abundance of iron minerals (pyrite, magnetite, pyrrhotite), and the presence of bedded
barite. This raises the possibility that sea floor exhalative hydrothermal processes may have
played a significant role in their formation (Hutchinson, 1986). A different interpretation
has been put forward by Schwartz and Surjono (1990b), who argue for a replacement
origin of the Nam Salu tin mineralization.
BHP commenced underground operations at Kelapa Kampit in 1975, and open-pit development of the Nam Salu deposit followed four years later. The mine was closed in 1993
after ownership of the mine had changed hands twice (in 1984 to Preussag, and in 1986 to
a domestic company).
2.4. B a u x i t e
The presence of bauxite was first recognized on Bintan, one of the Riau Islands, in 1925,
and impure bauxites were subsequently found on other islands in the region. West and
Southwest Kalimantan were thought by the Dutch to have potential, but no investigations
were carried out (Van Bemmelen, 1949). Development of the Bintan deposit started in
1935, and the mine has been in production without interruption to the present.
In 1969, ALCOA was granted a bauxite COW covering approximately 500,000 km 2 in
various parts of the Indonesian Archipelago (Fig. 3), more than one fifth of Indonesia's
land surface. The areas around the Sunda Shelf in West Indonesia were obviously selected
because of their long weathering history during the peneplanation of Sundaland, and the
presence of known bauxite occurrences. Gunung Sewu (Central Java), Sumba and Muna
were probably chosen because they contain extensive limestone karst on which terra rossa
bauxite might have developed, and South Kalimantan because of its known iron laterite
deposits ( under the right drainage and source conditions such deposits may change laterally
to aluminous laterites). The reasons for selecting the rest of the areas are less obvious.
Following a detailed literature review, ALCOA selected a number of areas tor investigation by either rapid ground reconnaissance or reconnaissance from the air. The presence
of concretionary bauxite float was initially considered to be the prime guide for finding
deposits. This was correct where the overburden is thin, such as in the Riau Islands, Bangka
and some parts of West Kalimantan, but was ineffective where the overburden is a few
metres thick, such as at Tayan, West Kalimantan. Subsequently, morphology was proven
to be a better guide, and from then on test pits were always dug for prospecting purposes
on low, gently rounded hills regardless of suspected bedrock type.
By 1971, the original COW area had been reduced to about 19,000 km 2 in certain parts
of West Kalimantan and the Riau Islands, which are precisely the areas identified by earlier
Dutch workers as having the best bauxite potential. In 1975, the area was further reduced
to 1,300 km 2 in West Kalimantan, where ALCOA had discovered large, low grade bauxite
27
deposits. These are predominantly associated with quartz-poor intrusions, which show the
strongest lateritization along the contact zones (Gunawan and Valk, 1972).
Total proven reserves in 10 deposits amount to 1,300 Mt averaging 30% A1203 and 7.4%
SiO2, including 800 Mt of recoverable reserves containing 40-43% A1203 and 2-4% reactive
silica after washing and screening. Feasibility studies carried out in 1974 envisaged a bauxite
mine in the Tayan area (Fig. 3), which contains the largest single deposit (270 Mt), an
alumina plant in the same area, and a power station and smelter at Asahan in North Sumatera
at an estimated total cost of US$ 3 billion in 1992 dollars. In 1977, ALCOA relinquished
the COW after having determined that the project was not economically feasible, reportedly
due to financing and marketing difficulties, and escalating costs. Total expenditure amounted
to US$14 million (52 M in 1992 dollars).
The Tayan deposit is currently being investigated in more detail by ANTAM with the
aim of replacing the bauxite reserves on Bintan island, which are expected to be exhausted
by 2005.
2.5. Discussion
With the exception of the ongoing exploration in Freeport's COW area, phase 1 was
largely completed by 1976 at an estimated cost of US$ 330 million in 1992 dollars. Since
that time, exploration for tin, nickel and bauxite has been carried out exclusively by the
state mining companies P.T. Tambang Timah and ANTAM. Simatupang (1979) and Suj itno
and S imatupang ( 1981 ) discuss Timah's tin exploration programs during the 1970s, and a
recent paper by Slamet ( 1991 ) gives an update on Indonesia's nickel industry.
Exploration during phase 1 was highly successful: large resources of copper (28 Mt),
gold (2,700 t), nickel (13 Mt), tin (0.13 Mt) and alumina (300 Mt) were outlined, and
six out of eight COWs reached the mining stage (including Gebe, which was taken over by
ANTAM). However, the resulting mining activity has produced so far rather mixed results.
Only the operations of Freeport (which is one of Indonesia's biggest taxpayers) and Koba
Tin could be classified as successful. The other two tin mines (both now closed down)
suffered losses, and INCO has yet to pay its first corporation tax. The longer term outlook
for INCO's operations is, however, more favourable in view of the fact that the company
is now one of the industry's lowest cost producers and has nickel resources that will last
well into the next century.
3. Phase 2: the porphyry copper search

3.1. Regional surveys
Optimistic expectations for copper prices, the recognition in the late 1960s of the importance of island arcs as a setting for porphyry copper deposits and the discoveries of this type
of deposit in neighbouring Papua New Guinea and the Philippines, all combined with
favourable COW terms spurred intensive exploration during the early 1970s. Three major
international copper producers, RTZ/CRA, Kennecott and Newmont, dominated the search.
They were j oined by Endeavour Resources ( an Australian junior company), and a Japanese
-Io
~:~
UNDER CONTRACT OF WORK
TAPADAA
MALALA
(Cu/Mo)
(Cu/Au)
(Mo)
(Cu/Au)
1 B
TOMBULILATO
4.. TANGSE
2.
3.
1.
DEPOSIT:
120
(Cu/Au)
(Cu/AuJ
DODO-ELANG
8. BATU HIJAU
9.
(Cu/Au)
'
7. GRASBERG
2M
'
800
(Cu/Au)
(Cu/Au)
400
5. KAPUTUSAN
6. BULAGIDUN
130
Fig. 4. The locations of porphyry Cu-Au, C u - M o and Mo deposits and areas investigated during phase 2. Also shown are deposits found during phase 4.
BHP
NEWMONT (CONSORTIUM)
ENDEAVOURRESOURCES
OVERSEAS MINERAL RESOURCES
D
E
110
KENNECOTT
RTZ/CRA
OTHER ARRANGEMENT
~.
_~
100
140
t~
29
consortium (Overseas Mineral Resources Development). Seven second generation COWs

were signed between 1969 and 1972, and some exploration was also carried out through
other arrangements, including joint ventures with ANTAM.
Exploration focused on the Barisan Range in Sumatera, northern Sulawesi and the central
belt of Irian Jaya. Additional work was carried Out in Java, Central Sulawesi, the Lesser
Sunda Islands and Halmahera (Fig. 4). As detailed geological maps were generally not
available, these areas were selected on the basis of broad criteria, such as the widespread
occurrence of Tertiary calc-alkaline rocks in an island arc or continental margin setting (in
a few cases with known copper occurrences) and the possibility that the porphyry copper
provinces of the Philippines and Papua New Guinea might extend into northern Sulawesi
and Irian Jaya respectively.
Stream sediment sampling ( - 80 mesh), with a minimum sample density of one sample
per 25 km 2, combined with float observation was the principal exploration tool, as this had
proven successful in neighbouring countries with similar climatic and terrain conditions.
Samples were assayed routinely for copper, lead and zinc, but rarely for gold. Because of
the lack of reliable topographic and geologic maps, aerial photography or SLAR (in one
case combined with aeromagnetics) were flown over selected areas prior to field work.
With few exceptions, the survey areas were located in inaccessible, rugged mountainous
terrain. This necessitated extensive use of helicopters, and in Irian Jaya of fixed-wing aircraft
also, which added considerably to the exploration costs.
By the end of 1975, the regional search had covered vast tracts of land (about 215,000
km2). Only three significant mineralized districts were identified, Tapadaa, Tombulilato
and Malala, all in northern Sulawesi (Fig. 4), and several very low grade porphyry copper
occurrences were found in West Sumatera (Taylor and Van Leeuwen, 1980).
3.2. P r o s p e c t investigations
The northern Sulawesi districts were investigated in detail between 1973 and 1982. Due
to poor outcrop, extensive pitting and contour trenching were used for mapping and sampling. Geophysical work was limited to ground magnetics, which proved not very useful.
In most cases, drill targets were based on rock geochemistry, detailed geologic mapping
and alteration studies. In contrast to the regional surveys, gold was commonly assayed, as
by that time the use of gold as a pathfinder element had been recognized from exploration
in other parts of the world.
The Tapadaa and Tombulilato districts were discovered in 1971-72 by P.T. Tropic
Endeavour Indonesia (TEl). Each consists of a broad anomalous area, containing several
discrete centres of copper-gold mineralization. Detailed follow-up was carried out by
Kennecott from 1973 to 1976 in joint venture with TEl. Their work showed that primary
copper mineralization was confined to small high-level quartz diorite bodies, and had locally
undergone supergene enrichment (Lowder and Dow, 1977, 1978). Work focused on tile
Tapadaa area, where only small and low grade reserves were identified (Appendix 1).
In 1976, Kennecott withdrew from the joint venture. Little additional work was carried
out until 1980, when T.E.I became a subsidiary of Utah International. This company
explored intensively in the Tombulilato district between 1980 and 1982, which resulted in
several new discoveries, including Sungai Mak and Cabang Kanan. Total indicated and
30
inferred reserves outlined in the Tombulilato district at Cabang Kiri East, Sungai Mak and
Kayubulan Ridge were 295 Mt averaging 0.57% Cu and 0.47 g/t Au (Appendix 1 ), half
of which is amenable to mining by open cut. In late 1982, preliminary feasibility studies
indicated that the project was not viable due to difficult terrain conditions, modest size and
grade of individual deposits, and depressed copper prices.
At Tombulilato (Carlile and Kirkegaard, 1985; Carlile et al., 1990; Perello, 1994), eight
mineralized intrusive bodies of Late Pliocene age occur within an area of 20 krn 2. Despite
the close proximity, each has distinctive characteristics as well as similarities (Appendix
1 ). Alteration in the two major deposits (Cabang Kiri East and Sungai Mak) shows a
common vertical zonation with various combinations of quartz, biotite, magnetite, albite,
chlorite and amphibole being dominant at deeper levels, and argillic and advanced argillic
assemblages occurring in the upper part of the system. Ore grade mineralization occurs in
all alteration zones, but varies in style and grade depending on the alteration type. Supergene
chalcocite is associated with argillic-advanced argillic alteration at Sungai Mak (where it
forms a blanket up to 150 m thick), and to a lesser extent at Cabang Kiri East and Kayubulan
Ridge. At Cabang Kiri East, average gold grades increase from 0,59 g/t in the upper part
to 2 g/t in the lower part without any significant increase in copper grades.
The work undertaken on the Sulawesi porphyry copper prospects has shown that ( I ) ore
grade mineralization can be (spatially) associated with advanced argillic alteration; t 2)
distribution of gold in leached caps can be a reliable guide to primary copper ore at depth;
(3) surface expressions of adjacent porphyry bodies can vary widely within a very short
distance; (4) patterns of leaching and secondary enrichment may be controlled by features
of the geology that cannot be seen or assessed at an early stage of exploration; and (5) the
systems can show strong gold/copper zonations.
The Malala district, identified during regional stream sediment sampling by RTZ/CRA
in 1973, returned anomalous base metal and molybdenum values in several streams. These
were followed up in 1976, leading to the discovery of significant molybdenite mineralization. Detailed work (Appendix 1) was carried out during 1977-78 and 1980-81, by which
time molybdenum, eagerly sought in the late 1970s, had been hit by a chronic oversupply
situation. Due to modest size and low grade, the deposit was not economically viable, and
consequently the COW was terminated in 1982.
Malala displays many features typical of the quartz monzonite or fluorine-poor style
molybdenum deposits, including alteration types and vein paragenesis (Appendix 1 ), but
differs in its tectonic setting, the late magmatic ( "deuteric" ) nature of the mineralization
and associated alteration, and strong carbonate development (Van Leeuwen et al., 1994).
The Malala and Tombulilato porphyry deposits are of similar age (i.e., Pliocene) and
are located relatively close to each other. However, they have contrasting tectonic settings.
Malala is interpreted to occur in a continental margin setting and to have formed in a postsubduction environment, following the collision of several continental microplates with
Sulawesi (Van Leeuwen et al., 1994), whereas the porphyry copper deposits are thought
to have been emplaced in an island arc setting above two opposed subduction zones,
following arc reversal (Kavalieris et al., 1992; Perello, 1994).
The detailed investigations of Tapadaa, Tombulilato and Malala were among the few
highlights of Indonesian exploration during the second half of the 1970s. No new major
surveys were undertaken. The marked drop in exploration can be attributed to a combination
31
of a moratorium on new COW applications from late 1972 to mid-1976, low commodity
prices, and changes in the COW terms introduced in 1976. Among the new conditions of
the so-called Third Generation COW were a 10% export tax on unprocessed minerals, a
windfall profits tax, the transfer of at least 51% equity to Indonesian parties within ten years
of production, and the obligation to establish processing, smelting and manufacturing
facilities in Indonesia, if economically feasible.
However, during the same period the Indonesian Government, with the assistance of a
number of foreign government agencies, increased the systematic geologic mapping programs in various parts of Indonesia, which commonly included geochemical surveys (Page
et al., 1978; Page and Young, 1981). These led to the discovery of porphyry copper
occurrences at Tangse in northern Sumatera (Young and Johari, 1978) and Kaputusan on
Bacan Island (Pudjowalujo and Bering, 1984; Bering, 1986; Fig. 4, Appendix 1 )
The Tangse prospect (Fig. 4) was investigated by CRA in cooperation with P.N. Tambang Timah between 1979 and 1981. Copper-molybdenum mineralization is hosted by a
multiphase quanz~liorite intrusion, emplaced along a segment of the Sumatran Fault Zone.
Alteration at Tangse displays a discrete zonal distribution and a regular paragenetic
sequence, with later feldspar destructive alteration superimposed on earlier biotite and
chlorite-epidote assemblages. An interesting feature of the alteration is that the fluids that
produced the late stage alteration were responsible for substantial remobilization and reconcentration of hypogene copper and molybdenum, resulting in both local enrichment and
depletion in the abundances of ore metals relative to earlier alteration (Van Leeuwen et al.,
1987). Although the mineralized system is large, grades are uneconomic (Appendix 1 ).
Results of an orientation survey at Tangse ( Force et al., 1984) indicated that soil sampling
for rutile (a common alteration product in porphyry copper deposits) could be useful in
delineating deeply weathered porphyry systems. In the absence of gold, it may be an effective
surface technique, reducing the need for extensive trenching in the initial stage of exploration.
3.3. P o s t - p h a s e 2 d i s c o v e r i e s
By the early 1980s, porphyry copper deposits had fallen out of favour as an exploration
target and gold had become the main focus of attention. The subsequent discoveries of
Grasberg (see above), Bulagidun in northern Sulawesi, and Batu Hijau and Dodo-Elang in
Sumbawa (Fig. 4; Appendix 1) showed this to be premature. The latter two were found
during a regional exploration program for primary gold. Serendipity played a role in their
discovery, as initial exploration focused on peripheral gold targets before the porphyry
copper potential was recognized.
B ulagidun (Lubis et al., 1994) occurs in an area previously interpreted by TEl geologists
to represent an area of high copper background. It differs from the other northern Sulawesi
deposits mainly in being somewhat older (Late Miocene), being exclusively hosted by
breccias, and containing tourmaline and K-feldspar as alteration products.
Grasberg (Van Nort et al., 1991 : MacDonald and Arnold, 1994) and Batu Hijau (Meldrum et ai., 1994), the two largest porphyry copper deposits in Indonesia, are, like Cabang
Kiri East, of the gold-rich type. They have a number of features in common: ( I ) multiple
events of intrusion, alteration and mineralization have occurred; (2) the latest and weakest
_5
C-
COAL DEPOSIT:
! . W. Senakin
2. E. Senokin
3. Satui
4. Ata
5. Pulou Lout
6. Petangls/Bindu
7. Binuang
8. Sorongga
9. Asom Asam
10.Pinang
11 .Bengolon
ORIGINAL COAL
AGREEMENT AREA
KM
300
I
12. Melawon
\
13.Roto
14.Samaranggau
15.Busong
16.Gitcln
17.Loa K u l u / L o a Haur
IG.Lati
eSINAMAR
eOMBILIN
600
Woro
19. Paringin
20. Tutupon
I
105 =
~ ~-~L./
I
110 =
~ - ~ ( ~
KA L I MANTA
//
~:=
N 15~
/I
Ilit
I
115 o
I'
11.
18
10
Fig. 5. The locations of coal deposits and areas investigated in Kalimantan during phase 3. Also shown are cited Sumatran coal deposits and Shelrs contract area.
-0o
- 5o
0
L
ic~o.
~D
e~
33
mineralized intrusive phase occurs in the centre of the stock; (3) the orebody is cylindrical
to conical in shape with considerable depth extent ( + 1,500 m and + 650 m respectively);
(4) copper-gold mineralization is associated with potassic alteration, both as disseminations
and in veins; (5) pyrite is minor to absent in copper-bearing veins; (6) there is a positive
correlation between copper and gold grades, and generally also between copper-gold grades
and vein intensity, with gold to copper ratios increasing with depth; (7) magnetite is a
common constituent of some quartz vein phases; and (8) an anomalous molybdenum zone
occurs peripheral to the copper-gold ore zone. Some notable differences between the two
deposits are: ( 1 ) anhydrite is strongly developed at Grasberg, but absent at Batu Hijau; (2)
the quartz-magnetite veins at Grasberg are barren, whereas they are mineralized at Batu
Hijau; and (3) advanced argillic assemblages are present in the upper part of the Batu Hijau
deposit.
3.4. Discussion
The porphyry copper search and subsequent follow-up work between 1969 and 1982 are
estimated to have cost on the order of US$ 80 million in 1992 dollars. Although this relatively
high expenditure has not resulted in a mine, one or more of the Sulawesi deposits may still
be developed in the future. Furthermore, the recent discoveries of Grasberg and Batu Hijau
show that the porphyry copper search of the 1970s was not exhaustive, suggesting that
potential remains for additional discoveries.
4. Phase 3: the coal revival
Indonesia possesses vast resources of coal and lignite totalling more than 30 billion
tonnes. These occur mainly in the Tertiary basins of Sumatera and South and East Kalimantan where measured reserves amount to 4.8 billion tonnes. Coal production commenced
in 1846 in the Mahakam Coal Field, East Kalimantan, and increased steadily as new mines
were developed in Sumatera and East Kalimantan. It reached a peak of 2 Mt pa just before
the outbreak of the Pacific war in 1941, by which time about 40 Mt had been produced
(Van Bemmelen, 1949).
The principal mines were Ombilin in West Sumatera and Bukit Asam in South Sumatera
(Fig. 5), both operated by the Netherlands Indies Government. The first discovery was in
the Ombilin area in 1868 by a Dutch mining engineer during a search for steaming coal to
compete with mines in Sarawak and Brunei. Production started in 1891, reaching a maximum of 665,000 tonnes in 193 I. Coal mining in the Bukit Asam area commenced in 1919,
although coal was reported from the area already in 1858. The highest output was reached
in 1941 when 863,000 tonnes were produced. A number of smaller, privately owned mines
operated in Kalimantan, but many were short-lived and produced less than 100,000 tonnes.
After the war there was a progressive decrease in coal production, and an all time low
was reached in the early 1970s with an annual production of less than 200,000 tonnes from
three Government owned mines, viz. Ombilin, Bukit Asam and Mahakam. There was a
brief resurgence of interest in coal with the introduction of the "Iron and Steel Project" in
34
1956, which involved unsuccessful exploration for coking coal in southeast Kalimantan
(Sigit, 1980).
Several factors contributed to the decline of Indonesia's coal industry in the three decades
following the war, including the lack of capital and technical expertise, high production
costs, and the discovery of cheap supplies of oil and gas within Indonesia. In 1971, the
Government closed the Mahakam mine and two years later considered closing Ombilin and
Bukit Asam too (Sigit, 1980; 1988a), but the 1973-74 oil crisis prompted the Government
to review its position. The first step it took was to freeze all exploration for coal by private
enterprise pending formulation of an energy policy. Two companies with prior exploration
rights in Sumatera, RTZ/CRA and Shell Mijnbouw, were excluded from that ban.
RTZ/CRA commenced exploration of occurrences found during porphyry copper exploration in West Sumatera in 1972. One of these, named Sinamar (Fig. 5), was investigated
in detail during the period 1973-1975, but was shown to be uneconomic because of its
restricted size (90 Mt), poor coal quality and remote location.
Shell Mijnbouw signed an exploration agreement with the State coal mining company
P.N. Batubara in 1973, covering 72,000 km 2 (Fig. 5). This was replaced by a productionsharing agreement in 1975. In 1974, the company embarked on a major exploration program
involving aerial photography, geologic mapping, test pitting, and drilling (9 rigs supported
by 3 helicopters). Six major deposits were identified within 20 km of Bukit Asam with total
reserves of 2,000 Mt (Kloosterman and Brom, 1979). Shell Mijnbouw concluded that poor
coal quality (high moisture and sodium contents) and difficult transportation conditions
would not allow an export-oriented project. They withdrew in late 1978, having spent US$
125 million in 1992 dollars.
In 1976, after several years of deliberations, the government announced its new energy
policy, which called for the diversification of the domestic energy resources aimed at
preserving more oil for export. Increased use of coal for power generation and fuel in the
cement industry was a key element. Official forecasts at the time assumed an increase in
domestic coal consumption from 1 Mt in 1980 to 7.5 Mt in 1990, and 12 Mt in 1995.
To meet these demands, it was decided to expand the production capacity of the Ombilin
and Bukit Asam mines to 1.3 Mt and 3 Mt respectively, and to develop the coal resources
of Kalimantan. The Bukit Asam expansion project received financial assistance from the
World Bank.
4.1. Kalimantan coal program
To promote development of the Kalimantan coal resources, the Government invited a

number of foreign companies to cooperate with P.N. Batubara (now named P.T. Tambang
Batubara Bukit Asam) in exploring eight areas. The companies were mostly large oil and
mining groups, including Agip, Arco, BP, CRA, Consol, Mobil Oil and Utah International.
After protracted negotiations, the first agreement was signed in November 1981 with P.T.
Arutmin Indonesia. Ten more agreements followed between 1981 and 1987, including two
with domestic companies.
The coal agreements are similar to the COW agreements, the main differences being: ( l )
the State coal company holds title and has overall management of the operations; (2) it
receives a 13.5% share of the annual coal production free of charge; and (3) the foreign
35
contractor provides all the financing of the project, but all purchased materials, supplies,
plant and equipment become the property of the State company.
Two basic strategies were adopted by the coal contractors. Some companies focused
initially on known coal occurrences to speed up mine development, and later carried out
regional surveys, whereas others undertook reconnaissance surveys before selecting target
areas. Surface geological mapping and coal outcrop sampling were the principal reconnaissance tool, because outcrop, particularly of coal, is usually good in the Tertiary basins of
South and East Kalimantan. Mapping was conducted along roads, timber tracks and streams,
as these provided both the easiest access and best rock exposures. Aerial photography and
SLAR surveys generated reliable topographic maps, and also aided regional geologic mapping.
Follow-up work involved detailed geologic mapping and topographic surveys, coal outcrop sampling and drilling, the latter often combined with geophysical borehole logging.
Drilling rigs varied from light weight portable units with a depth capacity of around 50 m
to larger truck mounted rigs. In many cases exploration was facilitated by the presence of
an extensive network of timber roads. Ground magnetics were effectively used in one case
to outline areas of burned coal (Van Leeuwen and Muggeridge, 1987).
Geologically the Kalimantan deposits can be divided into Eocene and Miocene coals.
The Eocene coals were formed during the early stage of a transgressive cycle in swamps
that received clastic material from adjacent Pre-Tertiary basement highs and were inundated
by the sea as the marine transgression progressed. Hence these coals are dirty (ash content
8-18 wt.%) and have variable sulphur contents. They are relatively hard (HGI < 42), but
inherent moisture contents are low (3.5-7 wt.%) and calorific values (air dried basis) are
relatively high (6,300-6,800 kcal/kg). The coal is usually developed in a single main seam
consisting of two or more splits and varying from 3 to 8 metres in thickness.
The Miocene coals accumulated in fluvio-deltaic environments during the later part of a
regressive cycle and are characterized by multiple seams. The coal basins are usually
extensive because of the prograding nature of the delta systems. Much of the coal is of low
to moderate rank, but characteristically has a low ash content and is usually also low in
sulphur. The most outstanding example is coal at Paringin (Fig. 5), with only 1 wt.% ash
and 0.1 wt.% sulphur, now marketed as "Enviro coal". Inherent moisture contents are
generally in the 10-30 wt.% range and calorific values vary from 4,000 to 6,000 kcal/kg.
Seam thicknesses are highly variable, reaching 30 m at Paringin. Higher rank coals are also
present, but mostly as thin seams in the steeply dipping flanks of anticlinal structures, thus
restricting their opencut potential. A notable exception is Pinang (Fig. 5), where several
seams, up to 7 m thick, of superior quality coal (Table 3) occur in a favourable structural
setting. Pinang was initially identified from vitrinite analysis of Dutch coal samples kept in
the Bandung Museum, and an unpublished Dutch report (Van Leeuwen et al., 1988).
Between 1981 and 1990, over 30 deposits were drill tested, involving approximately
600,000 m of drilling. Details of the more significant deposits are shown in Table 3.
Interestingly, the two economically most important deposits, Pinang and Satui (Fig. 5),
had no previous history of exploration, although the presence of high quality coal had been
noted by Dutch geologists during regional mapping programs. To date more than 5,000 Mt
of coal resources of varying rank and quality have been outlined, including measured
Sarongga
Asam-Asam
199
165
68
60
58
49
Miocene coal
67
Petangis/Bindu
53
69
56
10
Indicated
(Mt)
Resource
41
104
72
44
8
reserves
(Mt)
Measured
West Senakin
East Senakin
Satui
Ata
Pulau Laut
Eocene coal
Deposit
64
67
960
25
113
154
13
Inferred
(Mt)
334
1185
171
67
41
182
254
254
31
in situ
(Mt)
Total
(1994)
1988
1993
1989
(1995)
(1994)
(projected)
Start up
3
3
1
2
1
1
0.5
Initial
3
3
0.3
1
3
2
1
0.5
Ultimate
Capacity (Mt/
year)
Table 3
Kalimantan coal program: resources and development status. Deposit locations are shown in Fig. 5
P.T. Arutmin Indonesia

Sarongga coal: 37% T.M., 2% Ash, 0.1% S, 4350 kcal/kg
Asam-Asam: 35% T.M., 3% Ash, 0.2% S, 4700 kcal/kg
P.T. Chuang Hua Overseas Mining Dev., 1985

(99% Taiwan and Hongkong Trading Co).
5-9 T.M.; 8-19% ash; 0.3-0.9% S, 5700--6980 kcal/kg;
HGI: 29-39
P.T. Utah Indonesia, 1981 (100% BHP Minerals)

Product washed with specifications the same as E.
Senakin, except the CV (6700 kcal/kg).
P.T. Arutmin Indonesia, 1981

(80% B HP Minerals; 20% Bakrie Group)
W. Senakin coal: 9% T.M., 15% ash, 6400 kcal/kg
E. Senakin (washed): 11% T.M., 11% ash, 6650 kcal/kg
Satui coal: 10% T.M., 8% ash, 6800 kcal/kg
Sulphur and HGI for those coals are 0.7-0.8% and 37
respectively.
Comments
24
-
155
50
570
160
Busang
Gitan
Loa Kulu/Loa Hau
Lati
Paringin
Tutupan
Wara
15
310
20
260
343
24
-
193
130
57
102
46
12
641
15
85
50
181
16
123
63
-
152
590
730
77
1139
63
85
50
714
169
123
120
102
404
(1994)
(1997)
1991
1993
1988
(1995)
1993
(1995)
(1997)
(1997)
1989
2
2
1.5
1.0
1.5
2
2
2
15
15
2
1.5
2.5
5
4
4
12
Data sources: Proceedings Coal Contractors Work Conference, 1990, and personal communications.
Abbreviations: T.M. = total moisture; HGI = Hardgrove Grindability Index; S = Sulphur.
Ash, sulphur and calorific values are air dried basis.
340
23
206
Roto
Samaranggau
Bengalon
Separi
Runtu
Pinang
P.T. Adaro, 1982 (50% New Hope Group; 20% Enadimsa,

15% Asminco; 15% Tirtamas)
23% T.M., 1.0% ash, 0.10% S, 5500 kcal/kg.
28% T.M., 1.5% ash, 0.12% S, 4900 kcal/kg.
35% T.M., 2.5% ash, 0.20% S, 4100 kcal/kg.
P.T. Berau Coal, 1983

(40% Nissho Iwai, 60% P.T. United Tractors)
23.5% T.M., 3.5% ash, <0.9% S, 5700-5900 kcal/kg.
(40% New Hope Group, 50% J. Risyad Group, 10% Asminco)

16% T.M., 5% ash, 0.8% S, 6350 kcal/kg, HGI: 46.
P.T. Multi Harapan Utama, 1986
P.T. Kideco Jaya Agung, 1982 (Korean consortium)

18% T.M., 1.5% ash; 0.14% S, 5836 kcal/kg; HGI: 50-35
26.38% T.M., 2% ash; 0.10% S, 4910 kcal/kg.
P.T. Kaltim Prima Coal, 1982 (50% CRA, 50% BP Coal)

Prima coal (Pinang): 9.5% T.M., 4% ash, 0.5% S, 7100 kcal/kg
HGI: 50. Pinang coal: 13.5%, 7% ash, 0.4% S, 6300 kcal/kg.
Melawan and Bengalon coals similar to Pinang coal.
Separi: 20% T.M., 5% ash, 0.5% S, 5900 kcal/kg, HGI: 46
Runtu: 21% T.M., 5% ash, 0.1% S, 5800 kcal/kg
~g
t.~
r~
38
reserves of 1,500 Mt, at an estimated cost of US$160 million for exploration and feasibility
studies. By 1993, eight mines had been brought into production.
4.2. Discussion
In 1986, the government closed the coal industry to foreign investment. In the meantime
domestic involvement in the Indonesian coal development program has been increasing
significantly. This includes, besides the expansion of the Ombilin and Bukit Asam mines,
coal exploration by government agencies, the operation of several small mines in Sumatera,
East Kalimantan and South Sulawesi, and equity participation by Indonesian business
groups in projects initiated by foreign companies. For further details the reader is referred
to a paper by Suhandojo (1989). Of the two domestic companies that signed an agreement
with the State coal company (see above), one is producing (Tanito Harum), and the other
(Indominco Mandiri) has announced mineable resources of 295 Mt of medium quality
coal, with commercial exploitation being scheduled for 1995 (2 Mt annual capacity). The
domestic investors' interest in coal is still on the rise, as shown by the fact that 21 applications
for new coal concessions were lodged between 1991 and 1992.
Indonesia's coal production reached 23 Mt in 1992, of which 13 Mt came from foreign
contractors. The Government's annual production target by the year 2000 is 55 Mt, including
30 Mt for domestic consumption. With eight mines already in production and several more
under development, the Kalimantan coal program will go a long way to meet this goal.
5. Phase 4: the second gold rush

Gold mining in Indonesia has a long history. The Chinese mined alluvial deposits in
Kalimantan in the 4th century, and extensive underground and alluvial mining was carried
out by Hindu immigrants and the native population in Sumatera and North Sulawesi. Ancient
Chinese and Sanskrit manuscripts, more than 1,000 years old, describe the gold wealth of
the Indonesian Archipelago and the presence of many gold mines.
During most of their colonial rule, the Dutch preferred to buy gold and silver from the
native population, but towards the end of the last century there was a sudden rush in gold
exploration and mining activities in West Kalimantan, North Sulawesi and various parts of
Sumatera. However, the boom did not last long. Considerable losses were incurred and
"Indonesia never became the land of gold so hopefully visualized by the old Sanskrit poets
and story tellers" (Ter Braake, 1944). Two notable exceptions were the Lebong Donok
and Simau (Lebong Tandai) mines in Bengkulu, which contributed 61.5 % of the total gold
production of 130 tonnes between 1896 and 1941. At the start of the Pacific War, only four
mines were still in operation.
About 100 years after the first gold boom swept the country, Indonesia witnessed a second
gold rush. It was brought about by three factors: ( 1 ) a global boom in gold exploration that
developed in the early 1980s due to rapidly rising gold prices; (2) a perceived potential for
epithermal gold in Indonesia; and (3) significant modifications made to the Third Generation COW. These modifications, incorporated in the "Revised Third Generation COW",
included removal of the windfall profits tax and restrictions on foreign remittances, and
39
flexibility in the choice of location and size of exploration areas. The other important
development was the standardization of contracts, which overcame the need for protracted
negotiations. Following the introduction of the New Tax Law of 1984, which reduced direct
taxation but greatly increased indirect taxation through withholding and VAT, the Fourth
Generation COW was introduced, incorporating the new tax regime. Other changes included
a higher royalty on gold (on a sliding scale), a maximum size of 2,500 km 2 for individual
contract areas, and higher expenditure commitments. The need to have an Indonesian partner
from the outset was also formalized.
By 1987, 103 COWs for gold coveting approximately 360,000 km 2 had been signed
( Fig. 6). The majority of these were entered into by smaller Australian companies, relying
mainly on the stock market for financing. Among the larger companies were Ashton, Battle
Mountain, BP Minerals, CRA, CSR (whose tenements were taken over by Billiton in 1988),
Dominion Mining, Duval, INCO, Newmont, Placer, RGC and Utah International. The issue
of COWs to small foreign companies indicated a significant change in Government policy,
as previous contracts had been awarded almost exclusively to large international mining
companies. This change reflected the Government' s wish to promote development of smaller
deposits, which were of no interest to the big companies, and at the same time to encourage
domestic participation through joint ventures (Sigit, 1987).
In addition to the COWs approved for foreign investment, a large number of mining
authorities ( " K P ' s " ) were awarded to Indonesian individuals and local companies between
1980 and 1987. However, few KP holders carried out serious exploration by themselves,
preferring instead to sell or farm-out their tenements. In 1987, in order to reduce these
activities, the Government imposed stricter conditions on obtaining and maintaining titles.
The boom in gold exploration was preceded by a considerable increase in mining activity
by local people. Previously, gold mining by local people had usually been carried out by
small numbers of villagers on a seasonal basis and had been largely restricted to alluvial
mining by primitive methods. A dramatic change took place in the early 1980s when people
flocked in large numbers to old and newly discovered gold fields, mostly in Kalimantan and
North Sulawesi, to work on a full time basis. This sudden surge in local mining activity was
brought about by higher gold prices and a downturn in the domestic economy, and at its
peak involved 100,000 to 150,000 miners (Sigit, 1988b), who produced on the order of 15
tonnes of gold annually (McDivitt, 1989). The miners worked both alluvial and hard rock
occurrences, using increasingly sophisticated methods (James, 1994), frequently with
financial backing from unlicensed operators.
The Government recognized that these activities impinged On the legal rights of the COW
holders and in many cases interfered with exploration and development. However, the
problem was difficult to control. Although the Government helped, the initiative for resolution of the illegal local miner problem lay, for practical purposes, very much with the
COW holders. Apart from the legal issues, the Government was naturally concerned with
many other negative effects of illegal mining activity, including environmental damage and
health hazards due to the use of mercury, high grading of deposits, no taxes and royalties
paid, and the exploitation of the miners by unscrupulous businessmen and officials. There
was a considerable degree of sympathy felt for the plight of the local miner, and in 1989
the Govemment introduced the concept of "small-scale mining through village cooperatives" (Wiriosudarmo, 1990).
- tO"
11~0
1985
1986
120
l
1987
a9
Fig, 6. The locations of Contracts of Work issued between 1985 and 1992.
CONTRACT OF WORK SIGNED IN:
'~
11~)
~
I
I
130
1992
KM
400
8o0
IZ~
"
41
During the early stage of the goldboom, newspapers and magazines published numerous
articles with unrealistic projections based on interviews with Australian executives, which
seemed to owe more to a desire to boost egos and share prices than to objectivity. Unfortunately, they also raised expectations among groups in the government and public. The
euphoria was, however, short-lived. The combined effect of the October 1987 stockmarket
crash and lower gold prices significantly slowed exploration and development activity.
Around the same time, the Government declared a moratorium on the issue of further
COWs, as it was dissatisfied with the lack of progress by many COW holders. By mid199l, most of the smaller foreign companies and a few of the larger ones had left or
drastically reduced their activities. This decline in activity is demonstrated in Fig. 7, which
shows the annual total expenditure and annual total drilling meterage by foreign companies
over the period from 1985 to 1992. (Note that the increase in the 1992 expenditure and
drilling meterage is due largely to intensive drilling programs at Mt. Muro, Mesel and Batu
Hijau. )
The gradual lifting of the COW moratorium between 1988 and 1992 did not lead immediately to a significant increase in exploration activity. By the end of 1992, only four new
COWs had been signed or initialled, including two for industrial minerals. These belong to
the new Fifth Generation of COWs. Improvements over the 4th generation COW include a
higher debt to equity ratio for tax purposes, tax deductibility for some benefits in kind and
the right to keep accounts in US dollars. A number of more onerous terms have also been
included, such as significant increases in the land and building taxes, security deposit and
minimum expenditure levels, the exclusion of tin, nickel and industrial minerals, no guarantee of purchase of product by the Government in the case of an export ban, and the levy
U.S. $
(million)
100.
m
]
Historical
{000)
100D1992
90.
9o-
80-
ao~
70.
70
60.
5040302010-
60
j
f985
86
5O
40
20
10
87
88
89
90
91
92
J
1985
86
87
88
89
90
91
92
Fig. 7. Estimatedtotal annualexplorationand feasibility study expenditure (left) and drilling meterage (right)
by foreigncompaniesbetween 1985 and 1992.
Ellahulo
H. Sungingi
I , Woyla
G. T e w a h
F. C e m p o g a
E.
C. K a p u a s
I.
2,
3.
4.
5.
BiJang
,8o-
6,
7.
8.
9.
Gunung Mas
Buduk
Sungai Keruh
Timburu
2 c. ~
I0. Ratatotok (Mesel)

I1. Gunung Pani
12. Motomboto
t3. Doup
14, Lanut
,,6o
15. Binabose/Bawone
I6, Bolangitang
17. Sumalato
18 Paleleh
19. Awak Mas
/ %
,~'o.
,4
20.Miwah
21. M a n g a n i
22, Bukit "lembang
23, Lebong Tandai
24. Lebong Donok
25, Lebong Simpang
".....
26.Gunung Pongkor
2T.Ciawitali
28.Cikondang
29.Cikotok
30.Ciemas
,J,o~
.oo
,~
33.Soripesa
34,kerokis/Kali Kuning
35.Wanagon
32.DodolEtang
31. Pelangan
,oo
Fig. 8. The locations of alluvia[ and primary gold prospects drill tested during phase 4. Note that one symbol may represent more than one prospect.
Kelian
Mr, Muro
Masupa Ria
Mirah
Muyup
PRIMARY
-Io
'
tal
fi
T.M. van Leeuwen/ Journal of Geochemical Exploration 50 (1994) 13-90
43
of import duties on spare parts. Other changes include a new royalty scheme based on fixed
US$ amounts per unit of contained metal, the abolishment of a separate export royalty and
a return to contract areas larger than 2500 km 2. For a comprehensive discussion of the Fifth
COW the reader is referred to a paper by Watkins ( ! 993).
5.1. Alluvial gold
Prior to the gold rush of the 1980s some exploration for alluvial gold had already taken
place, mainly in Sumatera. This included re-evaluation of the Woyla deposit in West Aceh,
where the Dutch had commenced a dredging operation just before the outbreak of the Pacific
War, and which in recent years was exploited by a local company (Appendix 2).
In the 1980s, the focus of the exploration activities shifted to Kalimantan, involving
mostly Indonesian and small- to medium- sized foreign companies. Most of the areas
selected contained known alluvial gold occurrences (old Chinese workings, Dutch prospects/mines, local mining activities). Targets included Recent-Quaternary gravel terraces,
active gravel channels, buried channels downstream of exposed alluvial occurrences and
paleodrainages.
Typical exploration programs for alluvial gold in Indonesia have been described by Toh
(1979) and Andrews et al. (1991). These were based on the "classic" model, which
envisages accumulation of alluvial gold by mechanical and gravitational means. However,
recent research by Seeley and Senden (1994) suggests that gold in some of the Kalimantan
deposits has a different origin, involving transport of gold as a humic acid-stabilized colloid
from terraces, followed by aggregation of the colloidal gold within alluvial channels where
acid groundwaters mix with surface waters. These new findings may have important implications for exploration techniques applicable to this type of deposit.
Fig. 8 shows the location of alluvial prospects that have been or are being drill tested
(Appendix 2). Of these, three became dredging operations (Woyla, Ampalit and Monterado), and several others have reached the feasibility study stage or are in an advanced stage
of exploration. Post-feasibility study drilling and mine production grades for all three
projects fell short of expectations due to various reasons (Appendix 2). The resource
overvaluation combined with other factors (i.e., large overheads, poorly designed equipment and/or difficult ground conditions) adversely affected the economic viability of these
projects, resulting in the premature closure of the Monterado project and suspension of the
Woyla operations after only a few years of operation.
5.2. Primary gold
Prior to the gold rush, little exploration for hard rock gold had been carried out. Several
companies examined the Dutch Lebong Tandai mine in Bengkulu and Endeavour Resources
investigated Gunung Pani, a Dutch prospect in their porphyry copper block in Sulawesi. In
1975, RTZ/CRA embarked on a search for primary gold in Kalimantan, which led to the
discovery of the Kelian deposit.
44
Area selection and exploration techniques
Area selection at the start of the rush consisted of: ( 1) inspection of tenements offered
for joint venture by local businessmen, selected mainly on the basis of local miners' activity
and/or Dutch workings; (2) identification, through literature research, of Dutch mining
districts (where targets included both extensions to lodes mined by the Dutch and large
bulk, low grade deposits that would have gone unnoticed by them); and (3) application
for areas in Tertiary and Quaternary volcanic belts, with or without reported gold showings.
As the scramble for areas intensified, geological input decreased proportionally.
As shown in Fig. 6, the majority of COWs were taken out in Kalimantan and the volcanic
arcs of Sunda, Banda, and west and north Sulawesi. In Java, where foreign companies are
not allowed to hold COWs, several companies carried out investigations under agreements
with domestic tenement holders. Because of the tight title situation in these regions combined
with the discoveries of Grasberg, and zone VII at Porgera, Waft and Mt. Kare in Papua New
Guinea, the focus subsequently shifted to the central mountain range of Irian Jaya, where
Freeport, INCO and BRGM secured large tenement areas.
Bulk leach extractable gold (BLEG; Wood et al., 1990, pp. 440--441 ), stream sediment
and heavy mineral concentrate sampling combined with float observation and sampling
were the main reconnaissance exploration tools. Several case histories of regional geochemical programs in various parts of Indonesia have been presented by Hellman and Situmorang
(1986), Pringle (1989), Carlile et al. (1990), Watters et al. ( 1991 ), Andrews et al. ( 1991 ),
Sewell and Wheatley (1994a) and Turner (1993). Sampling media, sample spacing, sample
procedures, pathfinder element suites and interpretation methods varied from company to
company, due to individual preference and budget constraints or, less commonly, based on
results of orientation surveys. Average costs per sample site ranged between US$ 50-100
for easily accessible areas and US$ 2,000-3,000 for the central range of Irian Jaya. Remote
sensing formed an integral part of some regional programs, a notable example of which is
CSR's survey of the Lesser Sunda islands (Sewell and Wheatley, 1994a). Because of high
costs, airborne geophysical surveys were flown in only five COWs after considerable ground
investigations had already been completed. As in the case of coal, exploration companies
(and local miners) benefited greatly from timber activities, which opened up many hitherto
remote regions, particularly in Kalimantan, and in several instances exposed areas of alteration and mineralized veins.
A major problem was the ubiquitous presence of gold in streams in many areas, particularly in Kalimantan and parts of Sumatera. Spectacular anomalies in streams were often
derived from uneconomic sources, such as raised Tertiary and Quaternary alluvials, supergene enrichment over low grade mineralization, and low grade but widespread mineralization in intrusive contact zones, metamorphic veins etc. Trace element geochemistry was
used by some companies in an attempt to discriminate between anomalies derived from
secondary sources or uneconomic types of primary mineralization and those related to
potentially economic mineralization.
As discussed below, the Indonesian gold deposits show a wide variety of mineralization
styles and settings. Andrews et al. (1991) point out that this gives rise to highly variable
geochemical signatures and stress the importance of following up any indications, no matter
how subtle. The same point is made by Turner (1993), citing Mesel as an example; this
45
important deposit, located in carbonate terrain, gave no detectable gold in - 80 mesh silt
or panned concentrate samples, and only weakly anomalous values in BLEG samples.
Forty out of 75 drilled prospects were initially identified by regional geochemical methods. Most of the others were prospects previously found by the Dutch or local miners. In
most cases - 8 0 mesh and/or - 2 0 0 mesh silt anomalies were accompanied by gold in
panconcentrates. Notable exceptions include the vein deposits of the Gunung Pongkor and
Ciawitali districts in West Java, which yielded geochemical gold anomalies only, reflecting
the very fine-grained nature of the gold mineralization (Felenc et al., 1991 ). There is only
one reported case in which a prospect was found by gold in the pan without an accompanying
gold-in-silt geochemical anomaly. Remote sensing played an important part in two discoveries, viz. Mirah and Kali Kuning. Case studies of prospect investigations have been presented by Andrews et al. (1991), Swift and Alwan (1990), Van Leeuwen et al. (1990)
and Sewell and Wheatley (1994a). Drill targets were predominantly defined by surface
geochemistry and geology, in about 60% of the cases supported by geophysical methods,
including magnetics (30 prospects), IP (20) and VLEM (9). In one case (Bawone on
Sangihe), concealed mineralization was found by drill testing an IP/EM anomaly.
Erosion and weathering contributed to significant supergene enrichment at a number of
prospects. This constituted an important gold source for local miners, but often led to
disappointing results for the exploration companies when the underlying primary zone was
tested by drilling.
Geologic setting and main characteristics
Most of the primary gold prospects drilled to date (Fig. 8 and Appendix 3 ) are within
Neogene magmatic arcs (Carlile and Mitchell, 1994). The largest epithermal deposit found
to date is Kelian (Ferguson, 1986; Van Leeuwen et al., 1990), which has a geological
resource of 97 Mt at 1.85 g/t Au. It is situated in an apparent NE trending Oligo-Miocene
magmaticbelt in central Kalimantan, which hosts a number of smaller occurrences, including Mt. Muro ( Simmons and Browne, 1990), Masupa Ria ( Thompson et al., 1994), Mirah,
and Muyup (Wake, 1991 ). Kelian entered production in early 1992 with an annual output
in excess of 14 tonnes of gold, and Mt. Muro and Mirah are currently in the construction
and feasibility stage respectively. The central Kalimantan gold belt was not known to the
Dutch, and credit for its discovery should be given, at least in part, to local miners, as it was
their hard rock (Mt. Muro, Masupa Ria) and alluvial (Kelian, Muyup) activities which
brought foreign explorers to the region.
The above deposits belong to the "low sulphidation type" (Hedenquist, 1987), characterized by assemblages of quartz, illite (sericite), carbonate, pyrite and, with the notable
exception of Masupa Ria, adularia, which are overprinted by kaolinite dominated assemblages. At Masupa Ria, extensive zones of silicification with associated clay and pyrite
alteration ("silica caps") are present over areas up to l0 km 2. This alteration predates
mineralization and may have resulted from the condensation of volatiles generated by
magmas at depth in a high sulphidation environment (Thompson et al., 1994). Similar, but
less extensive alteration at Muyup is interpreted as a former near-surface zone of steamheated, acid waters (Wake, 1991 ).
With the exception of Kelian, these deposits are typical shallow-level epithermal systems
associated with quartz veins, vein breccias and stockworks hosted by andesitic volcanics.
46
Fluid inclusion studies indicate that mineralizing solutions were dilute ( < 4 eq. wt % NaCI )
and ranged between 200 and 290C. Supergene gold commonly occurs as small nuggets
and dendritic grains to a depth of 25-30 m. The behaviour of gold in the weathering zone
has been briefly discussed by Simmons and Browne (1990) and Van Leeuwen et al. (1990).
At Mirah, situated in fiat, swampy terrain, gold has been strongly leached from the upper
few metres.
Kelian differs from the other deposits in several important aspects: ( 1 ) the mineralization
is associated with subvolcanic intrusions and diatremes, (2) contemporaneous eruptive
rocks are absent, presumably due to erosion; (3) quartz veins and silicification are poorly
developed; (4) the gold mineralization is closely associated with iron and base-metal
sulphides and carbonate deposition; (5) silver to gold ratios are low; and (6) gold was
deposited mostly from relatively hot (270-330), moderately saline fluids. These features
suggest that the mineralization was )brmed in the transition zone between epithermal and
mesothermal environments (Van Leeuwen et al., 1990). They are typical of the "porphyryrelated carbonate-base metal-gold systems" of Leach and Corbett (1993), thought to form
through mixing of hot, gaseous, relatively saline mineralized fluids from buried porphyry
bodies at depth, with cool, dilute condensate or ground waters from the near-surface environment. Other examples include Porgera, Hidden Valley and Wau in Papua Nieuw Guinea
( Leach and Corbett, 1993).
Another well-mineralized belt is the Mio-Pliocene North Sulawesi/Sangihe arc, where
20 occurrences ( Fig. 8 ) have been investigated (Carlile et al., 1990; Kavalieris et al., 1992 ),
including ( 1 ) Dutch mines of Sumalata, Bolong Mongondou (now known as Lanut, Tobongan and Mintu), Ratatotok and Paleleh; (2) Dutch prospects at Gunung Pani and Doup,
(3) new discoveries near old mines in the Ratatotok district, including Mesel, and (4) new
finds at Bolongitang, Motomboto and Binabase/Bawone. No economic discoveries have
yet been announced, although work is continuing at several prospects, most notably at
Mesel, where a full feasibility study commenced in early 1993.
Compared to central Kalimantan, the gold mineralization of the North Sulawesi arc
displays a much wider variety of styles and settings (Carlile et al., 1990; Kavalieris et al.,
1992). These include: ( 1 ) low-sulphidation mineralization occurring in some combination
of quartz_+ carbonate veins, breccias, and stockworks, hosted predominantly by andesitic
volcanics (Mintu, Lanut and Tobongan), and in fractures and breccia zones hosted by a
rhyodacite dome (Gunung Pani; Kavalieris et al., 1990) ; (2) high-sulphidation mineralization at Motomboto, where it is probably related to porphyry copper mineralization (Perello, 1994) and at Binabase (Swift and Alwan, 1990) ; (3) mineralization associated with
polymetallic veins at Paleleh and Sumalata; (4) sediment-hosted replacement gold-base
metal mineralization at Doup; (5) sediment-hosted disseminated gold mineralization at
Mesel (Turner et al., 1994); (6) gold mineralization in paleokarst breccias and related
residual breccias in the Ratatotok district (Turner et al., 1994) ; and (7) porphyry-style
mineralization at Bulagidun ( Lubis et al., 1994) and Cabang Kiri East ( Carlile et al., 1990).
Available K/Ar dates and stratigraphic evidence suggest a predominantly late Miocene to
late Pliocene timing of the mineralization (Carlile and Mitchell, 1994; Perello, 1994).
Mesel, economically the most important deposit, is similar to many Carlin-type deposits
in a number of aspects, including decalcified and dolomitized carbonate, and jasperiod host
rocks, micron-sized gold in disseminated arsenopyrite, deficiency of base metals, and enrich-
47
ment in arsenic, antimony, thallium and mercury, but it is distinct in its island arc setting
(Turner et al., 1994).
In contrast to North Sulawesi, western Sulawesi seems poorly mineralized. To date only
one prospect, Awak Mas, has been drill tested. This prospect differs from the North Sulawesi
gold occurrences in its tectonic setting (continental collision zone), host rocks (metamorphic rocks), no apparent association with volcanic or intrusive rocks, the common presence
of albite as a gangue constituent, and low silver to gold ratios.
The longest Cenozoic arc system, the Sunda arc, including Sumatera, Java and the Lesser
Sunda Islands, hosts a number of Dutch gold mines and prospects, many of which were reexamined during the recent gold rush. Several new discoveries have been made, of which
Gunung Pongkor in West Java and Lerokis and Kali Kuning on Wetar Island are the most
significant. The discovery of Gunung Pongkor (Basuki et al., 1994) by ANTAM is of
particular interest because: ( 1) the deposit was not known despite the fact that the region
has a history of gold exploration and mining; (2) it is the second largest known epithermal
gold deposit in Indonesia; and (3) it took less than four years from discovery to decision
to mine.
Investigations of the old mines and prospects have met with varying success. The Lebong
Tandai mine (Jobson et al., 1994) reopened in 1985, and the Cikondang mine in West Java
and the Bukit Tembang prospect in South Sumatera have reached the feasibility stage.
Exploration of the old Lebong Donok mine in Sumatera and adjacent prospects has outlined
sofar only a small resource, but exploration is still continuing. Drilling beneath the old
workings of Mangani (Kavalieris et al., 1987) and Lebong Simpang encountered only the
barren roots of the mineralized systems. Most other known occurrences are too small to be
of interest.
As in central Kalimantan and North Sulawesi, the majority of epithermal gold occurrences
in the Sunda arc are low sulphidation in character and occur in quartz and quartz-carbonate
veins, vein-breccias (e.g., Jobson et al., 1994) and stockworks hosted predominantly by
volcanics of andesitic composition. High sulphidation mineralization has been found at
Miwah in northern Sumatera, Pelangan in Lombok and Dodo in Sumbawa. The latter
occurrence is related to a porphyry copper system (Appendix 1 ).
Most of the Sunda arc deposits characteristically display high silver to gold ratios. Base
metal and sulphide contents vary from minor (e.g., Bukit Tembang, Lebong Donok and
Gunung Pongkor) to abundant (e.g., Lebong Tandai, Cikondang, Cirotan and Soripesa).
Of particular interest is Lebong Donok, historically the richest gold mine in Indonesia,
which has important similarities to the Hishikari deposit in Japan (Izawa et al., 1990),
including comparable vein textures, a very low total sulphide content, a low silver to gold
ratio, a high selenium content, relatively abundant adularia, the presence of trusc0ttite, and
carbonaceous shale as a major wall rock (Kavalieris, 1988).
A notable feature of the eastern part of the Sunda gold belt, starting from East Sumbawa,
is the common association of gold with barite in quartz veins, stockworks and breccia bodies
that are characterized by large surface areas relative to depth. A different style of mineralization is found at Lerokis, Kali Kuning and Meron on Wetar Island (Sewell and Wheatley,
1994b), where gold-silver mineralization is hosted in stratiform barite-jarosite beds. It
displays several features typical of "classic" Kuroko deposits, including dome-like felsic
volcanic centres with siliceous and pyritic stockwork zones, massive sulphides, and fen-u-
48
ginous baritic caps overlain by tufts, mudstones and ferruginous chert. There are also notable
differences: the copper and zinc contents of the massive sulphides are relatively low, whereas
the baritic caps are enriched in gold, silver, arsenic and mercury. The epithermal element
suite suggests deposition under relatively shallow-water conditions (Sillitoe, 1994), and
the presence of enargite and alunite may indicate a high-sulphidation environment of
deposition (Carlile and Mitchell, 1994).
Stratigraphic relationships indicate a Neogene age for most gold deposits in the Sunda
arc (e.g., Carlile and Mitchell, 1994). Reconnaissance K/Ar dates on adularia samples
from several West Java deposits yielded Late Miocene and Plio-Pleistocene ages (Marcoux
and Milrsi, 1994), and a Pliocene age was obtained for an illite sample collected at Kali
Kuning (Sewell and Wheatley, 1994b).
Exploration of the deeply eroded Oligo-Miocene magmatic belt in West Kalimantan and
the young volcanic arcs of the Moluccas has so far yielded disappointing results. In the
former region, gold mineralization is predominantly associated with sulphidic quartz veins,
and less commonly skarns, e.g., at Buduk.
The richest gold province in Indonesia is the central range of Irian Jaya, owing to the
Ertsberg-Grasberg mines (2,700 t of gold). Regional surveys currently underway in this
region have identified a number of gold prospects, including Waganon in the Ertsberg
district, which is characterized by gold-silver-lead-zinc replacement mineralization in
carbonate rocks.
Southeast Kalimantan, south central Kalimantan and northern Sumatera are the only
gold-beating regions in Indonesia lacking conclusive evidence for association with Neogene
magmatism. In southeast Kalimantan, the Sungai Keruh and Timburu prospects display
both epithermal and mesothermal styles of mineralization. The mineralization is associated
(spatially) with monzonitic intrusions emplaced along major thrust zones separating ophiolites and andesitic volcanics of Mesozoic age, and is characteristically low in silver. In south
central Kalimantan, Cretaceous granitoids intruded into sedimentary rocks are commonly
accompanied by gold-bearing fissure veins and stockworks in the contact zone, the best
known example of which is Gunung Mas. Although individual veins are commonly highgrade, and hence eagerly sought by local miners, they are mostly narrow and widely spaced,
thus limiting their potential for larger scale mining. In northern Sumatera, gold mineralization is dominantly associated with copper-bearing magnetite veins and skarns, and is at
least in part of Mesozoic age (Beddoe-Stephens et al., 1987).
5.3. G o l d r e s o u r c e s
The grade-tonnage distribution for selected epithermal gold, copper-gold skarn and goldrich porphyry copper deposits is shown graphically on a log-log scale in Fig. 9. The majority
of the epithermal gold deposits fall in the range of 1 to 40 t of contained gold. Notable
exceptions are Mesel (53 t), Gunung Pongkor ( 100 t) and Kelian ( 180 t). As a comparison,
the gold contents of the copper skarn and porphyry deposits fall mostly in the 10-100 t
range; Batu Hijau contains about 250 t of gold, whereas Grasberg with 2,500 t of contained
gold is a class apart: it contains twice as much gold than all the other deposits combined
(epithermal: 660 t; skarn: 160 t; porphyry: 390 t). The combined resource of the alluvial
49
30 1
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RESOURCE (INCLUDING PAST PRODUCTION) IN MILLION TONNES
Fig. 9. Size and gold grade characteristics (in situ resources) for selected epithermal gold, skarn and porphyry
copper-golddeposits in Indonesia.
deposits is about 45 t, with the majority of the individual deposits containing between 2 and
3 tonnes of gold. (Note that all the above figures include past production).
5.4. Discussion
The high expectations that prevailed at the start of the gold rush have yet to be fulfilled.
Only five out of 103 COWs signed between 1985 and 1987 reached the mining stage; two
alluvial projects (Ampalit, Monterado) and three hardrock projects (Lebong Tandai, Lerokis/Kali Kuning and Kelian). A sixth project (Mt. Muro) is under construction and three
others (Bukit Tembang, Mesel/Ratatotok, Mirah) have reached the feasibility stage. With
the exception of Monterado and Lebong Tandai, these are new discoveries. It could be
argued that this somewhat limited success (i.e. seven discoveries in 103 COWs) may be
due to the following interactive factors:
- Indonesia did not take full advantage of the worldwide boom in gold exploration at the
beginning of the 1980s, as the first gold COWs were signed only in 1985.
-Exploration activity peaked within three years (by 1988) due to deteriorating global
economics.
- Most prospects investigated to date are not economically viable at a gold price below US$
400 per ounce.
- The majority of COWs were held by Australian junior companies, lacking adequate
financial and technical resources to pursue projects to fruition.
If the exploration success of stage 4 is measured in terms of discovery costs of in-situ
gold resources, a more favourable picture emerges. Exploration and feasibility expenditure
by foreign companies during 1985-1992 was US$ 355 million in 1992 dollars (Fig. 7),
10
0 o
zig.
I
110
1. RIAM KUSlK
2. KELAPA KAMPIT
3. SANGKAROPI
4. PAGAR GUNUNG
5. TANJUNG BALIT
I
c~
6. SUNGAI PAGU
7. SUNGAI TUBOH
8. GUNUNG LIMBUNG
9. GUNUNG GEDE
10. LONG LAI
I Drill tested prospects
LEAD/ZINC
[~0o
DANAU SERA
800
Covered by
regionol Survey
KM
400
DIAMONDS
1 3I 0
10. The locations of drill tested uranium, diamond and lead/zinc prospects and areas explored ibr uranium and diamonds.
( AL A N
;overed by
"egionol survey
IRANIUM
COO
t,~0 o
.o
51
and the total in-situ resource (including past production) in the seven COW discoveries is
about 330 tonnes of gold. This amounts to $ 35 per ounce in discovery costs. As a comparison, in North America the average discovery cost for in-situ gold during the period 19851990 was US$ 44/oz (Metals Economic Group, 1991 ).
6. Other activities
6.1. Uranium
The first search for uranium took place in the early 1950s when Dutch expeditions from
Delft University investigated the Birdshead area in Irian Jaya. The Indonesian National
Atomic Energy Agency (BATAN) conducted small-scale surveys in the early i 960s. Largescale exploration started only in 1969, mainly through agreements with foreign government
agencies.
Area selection (Fig. 10) was based on the presence of one or more of the following
geological features: ( 1) acid magmatic rocks, especially S-type granitoids; (2) associated
metamorphic rocks; and (3) non-marine sedimentary rocks derived from weathering of the
above two rock types (Agoes, 1988). Stream sediment sampling was used widely during
the reconnaissance phase. Airborne radiometric methods were unsuitable, due to thick soil
cover, dense vegetation and rugged topography. For similar reasons, ground radiometrics
had to be limited to areas with outcrops and float (Barthel, 1988). Geochemical techniques
(stream sediment, soil, rock) were used for more detailed investigations (Masdja and
Sastrawiharjo, 1988).
The only significant uranium discovery was at Kalan in West Kalimantan (Fig. 10),
which was explored between 1974 and 1988 by detailed radiometric and geological surveys,
trenching,, drilling and the excavation of an exploration tunnel. Mineralization occurs in a
number of undulating fault breccias, which form parallel boudinage-type structures within
a favourable bed, 80-150 m thick, in metasediments. Individual breccias vary from 0.3 to
1.5 m in thickness and contain 300 to 3000 ppm U. They are cut by breccias containing
gypsum, calcite and chlorite (Sarbini and Wirakusumah, 1988). The total resource is
approximately 11,000 tonnes of U3Os.
6.2. Diamonds"
Alluvial diamonds have been known in Kalimantan since the seventh century and occur
over a wide geographic area, having been recorded in every province. Traditionally, mining
has been on a small scale by family units or by Chinese immigrants. Dutch attempts between
1922 and 1933 to recover diamonds on a larger scale failed. Production figures are incomplete and unreliable, but the most active period seems to have been the 18th century. The
Dutch made a number of attempts to locate the primary source of the alluvial diamonds.
Only one possible source, the Pamali Breccia in the Meratus Mountains of South Kalimantan, was identified, which was interpreted as an intrusive breccia. Recently, Bergman et al.
(1987) and Burgarth and Mohr ( 1991 ) re-examined the occurrence and concluded that it
has a sedimentary origin.
52
Following discovery of the Trisakti diamond (166 carats) near Martapura in South
Kalimantan in 1965, the Government set up an agency to supervise and develop diamond
mining in the district. It was subsequently taken over by ANTAM, which was unable to
develop a profitable operation between 1968 and 1976. Brief investigations of other diamond
occurrences were undertaken by several foreign ~ompanies, including Seltrust and MIM,
in the late 1960s and early 1970s.
During 1983-84, Anaconda, in joint venture with ANTAM, carried out a major helicopter-supported survey for primary diamonds in areas of West and Central Kalimantan totalling
80,000 km 2 (Fig. 10). In most areas, minus 1.6 mm material, weighing 25-30 kg, was
collected at an overall density of one sample per 50-75 km 2. This was considered sufficient
to detect a primary diamond province, as it was assumed that kimberlites and lamProites
occurred in groups rather than as single bodies. In less prospective parts of West Kalimantan,
bulk samples of approximately 500 kg were taken from the best available trap sites to test
large areas (approx. 500 km 2 per sample) for microdiamonds.
The results were highly disappointing. No indicator minerals or ultramafic rocks of
kimberlitic or lamproitic affinity were identified. Anaconda interpreted the Kalimantan
diamonds to be derived from secondary sources because of (1) observed occurrences of
diamonds in Cretaceous, Tertiary and Quaternary conglomerates; (2) alluvial diamonds
found by them in West Kalimantan occurred in areas underlain by Lower Tertiary basal
conglomerates; (3) the robust nature of Kalimantan's alluvial diamonds; (4) surface abrasion features commonly displayed by the diamonds; and (5) the presence of green and
brown spots overprinting abrasion features on many diamond surfaces, which were believed
to be radioactive damage produced by the decay of monazite and zircon concentrated with
diamonds in alluvial deposits. Anaconda' s geologists speculated that some of the Kalimantan diamonds came from ultramafic rocks of ophiolitic origin, or that their source area was
outside Kalimantan. Taylor et al. (1990) suggest that on the basis of N aggregation characteristics the Kalimantan diamonds were derived from local primary sources related to
remnant Gondwanaland subcontinental lithosphere during the mid-Mesozoic or Tertiary.
Following Anaconda's unsuccessful search for a primary deposit, Acorn (subsequently
renamed Indonesia Diamond Corporation), in joint venture with ANTAM, explored for
alluvial diamonds in the Martapura district. Their target was buried channels downstream
of local workings, beyond the reach of local miners. In 1991, the company initiated development of an alluvial diamond mining operation at Danau Sera based on reserves of 3 Mm 3
@ 0.15 ct/m 3 (overburden: 9 Mm3), a high proportion of which was expected to be gem
quality. Financial problems ended the operations in the following year.
The Malaysian Mining Corporation is currently exploring in the same district, again with
buried channels as the principal target. A magnetic and EM resistivity survey was flown to
map these channels, and a sampling program commenced in 1992.
6.3. L e a d a n d zinc
Numerous lead-zinc occurrences were found by the Dutch in Sumatera, Kalimantan,

Java and Sulawesi, some of which were mined briefly on a small scale. During the last 25
years no systematic exploration for lead and zinc has been undertaken, but several known
occurrences and new finds were investigated in some detail (Fig. 10; Table 4).
53
Table 4
Drill tested lead-zinc occurrences in Indonesia
Deposit
Resource
Comments
Riam Kusik
0.27 Mt @ 10% Pb,

11% Zn, 250 g/t Ag
Narrow veins of massive sulphides along

Cretaceous limestone-dyke contact.
Nam Salu
not available
Lenses and irregular veins of massive

sulphides + quartz in shears in Permo-Carboniferous sediments.
Sangkaropi
not available
Stratiform and brecciated massive

sulphides and stockworks with associated
quartz and barite in rhyolitic pyroclastic
rocks of Miocene age.
Pagar Gunung
0.8 Mt @ 4.5% Zn,

1.2% Pb, 0.45% Cu,
68 g/t Ag
Lenses and veins of massive sulphides

hosted by Paleozoic sediments and
volcanic rocks intruded by granites.
Tanjung Balit
0.9 Mt @ 4.5% Pb,

3.6% Zn, 98 g/t Ag,
0.6 g/t Au.
Irregular lenses and veins in PermoCarboniferous sedimentary rocks

intruded by Triassic granite.
Sungai Pagu
0.48 Mt @ 2.4% Pb,

1.6% Zn
Pb--Zn-Ag + Cu + As + Au veins
within felsic volcanic rocks and contact
zones with uhrabasic rocks.
Sungai Tuboh
1.76 Mt @ 10% Zn,

1.5% Pb, 0.8% Cu,
Irregular skarn deposits along Jurassic

limestone-tuff-sandstone and
Tertiary granite contact.
130 g/t Ag, 0.10 g/t Au.

Gunung Limbung
3.5 Mt @ 4.6% Zn,

2.4% Pb, 0.37% Cu.
Nine narrow N-trending quartz veins

hosted by Miocene diorite and
sedimentary rocks.
Gunung Gede
1.46 Mt @ 4.12 Zn,

0.9% Pb, 0.1% Cu.
Thin, irregular, massive sulphide veins

and lenses along contacts between
Miocene diorite and sedimentary rocks.
Long Laai
not available
Irregular skarn deposits hosted by

hornfels and Cretaceous-Eocene
sandstone/siltstone intruded by
Oligocene granite.
B e t w e e n 1972 a n d 1975, A L C O A carried o u t d e t a i l e d i n v e s t i g a t i o n s ( i n c l u d i n g d r i l l i n g )

o f the R i a m K u s i k p r o s p e c t , a l e a d - z i n c o c c u r r e n c e located in t h e i r W e s t K a l i m a n t a n b a u x i t e
c o n c e s s i o n , w h i c h h a d b e e n k n o w n since 1871. R e n e w e d interest in this p r o s p e c t h a s b e e n
s h o w n b y T a n j u n g R e s o u r c e s , w h i c h b e t w e e n 1990 a n d 1992 u n d e r t o o k m a p p i n g a n d
s a m p l i n g o f the o l d A L C O A t r e n c h e s , d i a m o n d drilling, a n d the s i n k i n g o f a shaft.
M i n e r a l i z a t i o n is largely c o v e r e d b y alluvial d e p o s i t s a n d o c c u r s i n t e r m i t t e n t l y as steeply
54
dipping, narrow veins in a 1 km long, EW trending, partly-faulted contact zone between

limestone and altered quartz~liorite dykes. It varies considerably from banded, fine-grained
massive sulphides to coarse-grained sulphides. Brecciation and rebrecciation are common
features. The mineralization is preceded by quartz-calcite veins and cut by later chalcedonic
quartz veins.
During BHP's exploration for tin in the Nam Salu horizon at Kelapa Kampit, Belitung
Island (see above), lead-zinc mineralization was intersected in cross-cuts and drill holes
within and near the horizon over a strike length of 4 km. BHP was not interested in the
lead-zinc potential but used the mineralization close to the footwall of the Nam Salu horizon
as a ' 'marker bed' '. Following their take over of the Kelapa Kampit COW in 1984, Preussag
explored for lead-zinc between 1984 and 1986. This included auger sampling, an EM
survey, drilling and underground exploration. Drilling of EM anomalies and base metal
anomalies in soil intersected only minor mineralization.
Available evidence suggests that lead-zinc mineralization found to date is predominantly
controlled by bedding-plane parallel shears within and adjacent to the Nam Salu horizon,
and occurs in lenses and irregular, narrow veins as ( 1 ) massive, fine-grained sphalerite,
galena and pyrite, locally with a streaky lamination and commonly containing fragments of
vein quartz and argillized mudstone; (2) brecciated quartz veins and argillized mudstones
with selvages of sulphides; and (3) disseminated sphalerite and galena in quartzitic sandstones. As with the Nam Salu tin mineralization, syngenetic and epigenetic origins have
both been proposed.
Kuroko-style mineralization at Sangkaropi, Central Sulawesi, was investigated in detail
t including drilling and aditing) by ANTAM in the 1970s (Yoshida et al., 1982). Only a
small resource was outlined. In 1991, Aberfoyle initiated an exploration program for volcanogenic massive sulphide deposits in the same district, but to date no significant new
discoveries have been made.
Other lead-zinc occurrences which have been drill tested (Djaswadi, 1993) are shown
in Table 4. None of these occurrences appear to have significant economic potential.
6.4. Into the next 25 years
After phase 4, which was a typical boom-bust stage of exploration, the mining industry
has entered a period of consolidation. At the beginning of 1993, 12 foreign companies had
active exploration programmes compared to more than 30 during the gold boom. These
include Aberfoyle, Ashton, Battle Mountain, BHP, BRGM, CRA, Freeport, INCO, Newcrest, Newmont and Pelsart. Junior companies are unlikely to be back in force within the
foreseeable future due to several reasons. For one, their overall disappointing performance
has prompted the Government to tighten the screening process of new COW applications
by increasing the foreign contractors' financial obligations during exploration. By contrast,
involvement of large Indonesian business groups in gold and coal has been increasing
significantly during recent years, and this may lead to a broadening of the domestic mining
industry.
The pace at which exploration and mine development will proceed during the next 25
years will, to a large extent, depend on Indonesia's perceived prospectivity, its competitiveness in terms of political stability and commercial environment, and more global factors
55
such as commodity prices, world-wide exploration budgets and capital availability. Some
aspects of the country's prospectivity and commercial environment are briefly discussed
below. Discussion of the other factors is beyond the scope of this paper.
Reasons to feel optimistic about Indonesia's future discovery potential include the following:
( 1 ) Compared to countries such as Australia, the USA and Canada, Indonesia remains
relatively underexplored. There are still virgin areas, and many other areas have been
covered only once by regional surveys, which were of varying intensity and quality.
(2) Almost all regional surveys to date were aimed at a single commodity or target type.
In other parts in the world there are many examples of new discoveries made in areas with
a long history of exploration, but where geologists had been looking for something else.
(3) Most of the discoveries made to date had good surface expressions and resulted from
using traditional exploration techniques. Greater and better application of geophysics, conceptual geology, remote sensing and other modern techniques using a multidisciplinary,
integrated approach should lead to the discovery of deposits with poorer or no surface
expressions, and of new ore body types.
(4) In the majority of cases area selection was based on research of Dutch literature,
presence of known mineral occurrences (including local workings) and/or broad geologic
criteria. Over the past 25 years a vast amount of new data have been collected by exploration
companies, government agencies and research institutes. Review and follow up of these
data, and of historic data in the light of new concepts, are likely to increase the chances for
discovery success.
(5) The continuing economic development of Indonesia will gradually open more and
more remote areas, thus changing the economics of both exploration and mining.
As mentioned above, one of the factors that will determine to what extent the discovery
potential will be realized is Indonesia's future commercial and operational environment.
Some areas of concern include the following:
( 1 ) Openfile data system: Over the past 25 years Indonesia has done an admirable job
in geologically mapping the country. However, most of the mapping done to date is first
pass reconnaissance in nature. As in the future there will remain less and less well-exposed
deposits to be discovered, there will be an increasing need for more detailed geologic
information. The same applies to airborne geophysical data, which currently are virtually
non-existent. Unfortunately, since 1985 government funds for these types of work have
been limited, and this situation it unlikely to change in the near future. At present, aerial
photography, SLAR, etc., are not always readily available because of security and other
reasons. Similarly, relinquishment reports by COW companies are not easily found in open
file. In addition, some of these reports are sub-standard, and certain important information,
such as drill core, is usually lost when a company terminates its COW.
(2) Continuity in exploration: Several times in the past, momentum in exploration was
lost because of moratoria on new land acquisition and lengthy periods of negotiations for a
new generation of COWs. This stop and start approach considerably slows down the process
of sustained exploration, and hence the discovery rate.
(3) Land access: Because of Indonesia's rapid economic development, competition for
land use has been increasing significantly. Furthermore, existing and proposed forest and
nature reserves cover large tracts of land in regions of good mineral potential (e.g., the
56
Tombulilato porphyry-copper district was included in a national park in 1991, and the
central part of the Irian Jaya copper-gold belt falls within a designated national park). To
gain exploration and/or mining title to areas with overlapping land rights or forest reserves
can be time consuming and costly, whereas in the case of pre-existing national parks this is
virtually impossible.
(4) Modus operandi: Although the COW system is on the whole superior to most other
mining investment regimes, it has some drawbacks too. It requires the establishment of a
new locally incorporated company, which is a separate legal and tax entity, for each COW
area. In the case where a foreign investor holds more than one COW, this duplicates many
functions, increases overhead costs and tax exposure, and reduces overall flexibility in
exploration. Liquidation of these companies, in the event of unsuccessful exploration, is
time consuming. Furthermore, abortive expenditure in one COW area cannot be transferred
to another.
(5) Costs: Exploration in Indonesia is relatively expensive. Costs for drilling, airborne
geophysical and remote sensing surveys, helicopters etc., are significantly higher than in,
for example, Australia. Employment of expatriate staff, a cumbersome bureaucracy and the
geographic nature of the country also add to the costs. Available statistics suggest a significant increase in exploration costs in real terms over the past 25 years, e.g., a comparison
between regional surveys carried out in central Irian Jaya in the early 1970s and late 1980s
shows a doubling of costs (US$1,500 against $2,50(03,000 per sample in 1990 dollars).
Increasing difficulty of finding new deposits under deeper soil and rock will further increase
costs.
(6) Outside competition: It could be argued that the lack of proper investment regimes
in most other countries in the Asia/Pacific region has, by default, assisted Indonesia to
reach its present competitive position (Ritchie, 1992). However, this situation is rapidly
changing. In order to stimulate mineral exploration and development in their countries, a
significant number of governments have recently overhauled their mining and foreign
investment laws, or are in the process of doing so. Although many of these countries still
have to show that they have the capabilities of implementing their new investment codes, a
trend towards a wider geographic spread of exploration funds has already started. This
development, together with the fact that since 1991 world-wide exploration budgets have
been drastically cut and are unlikely to increase significantly in the foreseeable future, means
that competition for investment funds will become increasingly fierce, and hence Indonesia
may have to review the fiscal regime in mining (which currently offers few special incentives) to remain competitive.
Technical aspects of exploration in the coming years, such as area selection, exploration
methods and target types, are predicted to undergo the following trends. Exploration will
focus on known mineral districts and existing mining areas, and on mineral occurrences
and geochemical anomalies identified during previous exploration phases; there will be less
emphasis on large grass roots surveys. Geochemical sampling methods, which generally
proved to be effective in Indonesia's tropical and predominantly mountainous environment,
will continue to be used as one of the principal exploration tools. The main changes will be
in the greater use of computer-assisted interpretation techniques and a wider range of
elements analyzed. Geophysical methods will be increasingly used, but in the case of
airborne surveys only if costs can be reduced. The usefulness of remote sensing as a tool
57
for direct target definition will be largely restricted to the drier, less vegetated parts of the
country. The recent trend to drill test prospects at an relatively early stage by using portable
drilling equipment is likely to continue.
Gold will continue to be a main target, at least in the short term. Because of the poor past
performance of Indonesia' s alluvial operations and the diminished role of junior companies,
hard rock deposits will be the main focus of interest for foreign explorers. The recent
discoveries of Grasberg and Batu Hijau is generating renewed interest in porphyry copper
deposits, in particular the gold-rich type. As most of the "sore thumb" deposits are likely
to have been found during the regional surveys of phases 2 and 4, geologists will have to
look for more subtle indications. Assuming that the target for future domestic coal consumption set by the Government is realistic and/or world coal markets continue to grow,
the coming years will witness another boom in coal exploration, mainly in the established
fields. Opportunity commodities may include lead-zinc, mineral sands and diamonds. Industrial minerals (Hasbullah, 1990) will be primarily of interest to domestic companies and
cooperatives. New concepts, chance discoveries and/or changes in world commodity markets may lead to exploration for other commodities or ore types.
With regard to future mine developments, several gold and copper-gold prospects identified during the 1980s are likely to be brought into production, in particular if the outlook
for gold improves. Before the end of the century the annual production of copper and gold
is expected to increase to 400,000-600,000 t and 50-70 t respectively. Coal production will
also increase significantly, both from existing operations and new mines, and may reach
50-60 Mt by the year 2000. An improvement in metal prices combined with the development
of new metallurgical processes and/or the availability of cheap energy may result in
increased exploitation of Indonesia's vast bauxite and nickel laterite resources, with the
annual nickel output exceeding 75,000 t, and continued growth of the national economy
will stimulate demand for industrial minerals. In contrast, tin production is likely to decline
despite continuing restructuring of the industry, which commenced in 1984 and made
Indonesia one of the lowest cost producers in 1988.
7. Conclusions
During the past 25 years Indonesia has witnessed an unprecedented high level in mineral
exploration activity, which has been rivalled by few other countries in the Asia/Pacific
Table 5
Indonesia'sannual mineral productionbetween 1940and 1992shownfor selected years.
Commodity Unit
Tin
Copper
Coal
Bauxite
Nickel
Gold
Silver
1940
1966
tonne
44,000 12,770
tonne
tonne 2,000,000 320,000
tonne 275,000 701,300
tonne
1,350
2,850
kg
2,800
130
kg
46,850
6,870
1975
1981
1985
1990
1992
25,340
35,390
21,760
30,200
30,400
80,500 7 5 , 4 0 0 9 1 , 9 4 0 152.140 290,880
206,000
39,900 1,942,000 10,620,000 23,337,000
992,600 1,203,400 830,500 1,205,700 803,510
19,200 4 1 , 6 0 0 41,900
65,900
68,950
2,380
1,690
2,650
11,750
38,260
32,650 25,820
38,330
65,880
100,850
58
T.M. van Leeuwen / Journal of" Geochemical Exploration 50 (1994) 13-90
Table 6
Mineral discoveries in Indonesia between 1967 and 1992
Deposit
( Discovery by )
Commodity
Discovery
date
Ensberg
( Freeport )
Soroako
(INCO)
Gebe
(INDECO)
Gag
( US Steel )
Tayan
( ALCOA )
Ensberg
(Freeport)
Pulau Tujuh
( Billiton )
Nam Sulu
( BHP )
Dom
( Freeport )
Cabang Kiri
(Endeavour/Kennecott)
Kelian
(CRA)
Cu / Au
1967
1972
Convential prospecting.
Ni
1971
1978
Ni
1971
1979
Convential prospecting in area

with known Ni laterite.
Ni
1972
AI
1972
Cu/Au
1975
1980
Sn
1975
1980
Sn
1976
1979
Cu / Au
1976
Cu/Au
1976
Drilling of combined magnetic/

geochemical anomaly.
Drilling of malachite-stained
outcrop.
Stream sediment sampling.
Au
1979
1992
Kayubulan Ridge
( Endeavour )
Sungai Mak
( UTAH )
Pinang
(CRA+BP)
Ampalit
( Pelsart )
Cu / Au
1979
Alluvial gold mined by locals traced

to its source by stream sediment
and soil sampling.
Cu/Au
198 I
Coal
1983
1989
Au
1985
1988
Mirah
( Pelsart )
Au/Ag
1986
1995)
Mt. Muro
( Duval/Penzoil )
Au/Ag
1986
1994)
Lerokis
(CSR)
Grasberg
( Freeport )
Pongkor
( ANTAM )
Au/Ag
1987
1991
Cu/Au
1988
1989
Report of local mining activity

followed-up by convential
prospecting.
Infra-red photo/SLAR anomaly
tollowed-up by convential
prospecting.
Report of local mining activity
followed-up by convential
prospecting.
BLEG and stream sediment
sampling
Au/Ag
1988
1994)
Au
1988
( 1995 )
Coal
1988
1990
Mesel
(Newmont)
Satui
( UTAH )
Production
projected )
Discovery method( s )
Convential prospecting in area

with known Ni laterite.
Convential prospecting
Drilling of malachite-stained
outcrop.
Drilling of geophysical target.
Report of mineralized float

followed up by stream sediment
sampling.
Convential prospecting in old
Dutc h mining district.
59
Deposit
( Discovery by )
Commodity
Discovery
date
Production
(projected)
Discovery method(s)
Batu Hijau
( Newmont )
Kali Kuning
( Billiton )
Bukit Tembang
(CRA)
Big Gossan
( Freeport )
Cu/Au
1991
(1998)
Au/Ag
1990
(1994)
Au / Ag
1987
Cu/Au
1991
TM anomaly followed-up by
convential prospecting.
Dutch report followed-up by
stream sediment and soil sampling.
For the definitions of "discovery", "discovery date" and "'discovery methods" the reader is referred to Derry
and Booth ( 1978 ) ; only those coal deposits occurring in areas with no previous record of exploration are classified
as discoveries.
region. This can be attributed to: ( 1) Indonesia's mineral prospectivity; (2) the Government's open door policy for foreign investment in mining; (3) the COW system; and (4)
the country's remarkable political stability and economic development since 1967.
Foreign investment has played a dominant role in the mineral development of the country.
It is estimated that total exploration expenditure inclusive of feasibility studies by [breign
companies between 1967 and 1992 was in excess of one billion US$ ( 1992 dollars).
Since 1967, the COW system has evolved through six stages or "generations". Their
uneven distribution (Fig. 11) reflects changes in both government policy and external
conditions. With the exception of the Revised Third COW, progressively tighter conditions
were imposed, particularly in the fiscal regime.
The exploration activity over the past 25 years has been successful in outlining significant
mineral resources, including 32 Mt Cu, 3,700 t Au, 13 Mt Ni, 0.13 Mt Sn and 5,000 Mt
coal, which has resulted in a dramatic increase in mineral production (Table 5).
The majority of discoveries made during the past 25 years resulted from regional surveys
of mineral districts identified by the Dutch (e.g., the Sumatera tin belt, the Kalimantan coal
basins, the nickel-bearing laterite areas in Indonesia, and the Bengkulu and North Sulawesi
gold districts) and investigations of Dutch prospects and mines or adjacent areas (e.g., the
Ertsberg district, Soroako, Mesel, Nam Salu, Bukit Tembang). Others were found through
surveys of regions selected on general geologic criteria (e.g., the Sulawesi porphyry copper
and molybdenum deposits, G. Pongkor, Batu Hijau, Lerokis/Kali Kuning). In yet other
cases, local miners led the way, either directly or indirectly (e.g., Kelian, Mt. Muro,
Ampalit).
Table 6 lists the mineral discoveries made between 1967 and 1992. In each case the
principal metal (s) or mineral, date and method(s) of discovery and date of first production
(where applicable) are indicated. It should be stressed that the accuracy of the data used
could not always be verified and that in compiling this table imposition of a personal bias
was unavoidable. Data in Table 6 show that: ( 1) 26 deposits have been discovered since
1967, 12 of which have been put into production; an additional four are likely to have
reached the mining stage by 1995; (2) of these discoveries, 14 were made by conventional
prospecting (including Ertsberg East and Dom), eight by stream sediment + soil sampling,
and two by drilling of geophysical targets; remote sensing played a significant role in two
60

PHASE I
I--
PHASE 2; regional
Ongoing investigations in the Ertsberg area

Follow up
4
PHASE 3
PHASE 4
I. . . . .
Moratorium new COWs

f
Moratorium coal
70
6O
50
J
40-~
t~
3020-
t~ 10-
International tenders for tin and nickel areas

and 53 general mineral blocks
Moratorium new COWs
9-
87-
Moratorium cool exptorotion
6-
[--I
545211967'68'69'70'71 '72'73'74'75'76'77'78'79'80'
81 ' 8 2 ' 8 3 ' 8 4 ' 8 5 ' 8 6 ' 8 7 ' 8 8 ' 8 9 ' 9 0 ' 9 1
'92'
COW GENERATION:
[~fl
First
[]Second
Fig. 11.
[]
Third
[]
Fouri'h
[]
Coal agreement
Revised Third
~L~
F'fth
[]
Mining stage
(d : domestic )
Summary of Contract of Work/Coal Agreement history.
cases; (3) the average time between discovery and first production for the 16 deposits
mentioned under ( 1 ) is about 6 years.
As a final conclusion, over the past 25 years Indonesia has made considerable progress
in the development of its mineral resources. Although this development has been dominated
by foreign investment, there has been a continuing trend of increasing domestic participation
in terms of financing, management, and professional and technical skills. This together with
Indonesia's still underdeveloped mineral potential and a continued favourable investment
climate should bode well for the country's mining industry for the next 25 years.
Acknowledgements
This paper would not have been possible without the generous help received from many
colleagues in the industry. I would like to express my gratitude in particular to Waheed
Ahmad, Mike Andrews, Dave Benham, Colin Bryant, Steve Bugg, John Carlile, Barry
Davis, Colin Davies, Harsoyo Dihardjo, Guy Dodds, John Dow, Geoff Eupene, Mike
61
Everett, John Felderhoff, Canice Fleming, Rachman Gunawan, Alistair Grant, Bill Hewitt,
Peter Jackson, Rod Jones, Imants Kavalieris, George Katchan, Dave Klingner, Brian Levet,
Fred Omer-Cooper, Dave Potter, Graeme Robertson, Soetarjo Sigit, John Seeley, John
Slater, Soemardiman, Eddy Sumarsono, Benny Wahyu, Chris Wheatley, Laurie Whitehouse, Joachim Wilke, and Bill Zimmerman.
The 1991 version of this paper was critically reviewed by Soetarjo Sigit, John Carlile,
Ken Ferguson, Julian Bavin and Andrew Cuthbertson, and the present paper by Dick Sillitoe,
Dick Henley, Larry James, Jeff Hedenquist and Colin Davies. I specially thank them for
their comments, and Tuti Mariani for patiently preparing numerous drafts and for the lay
out, and Syamsuddin for drafting the illustrations.
The permission of CRA Exploration to publish the manuscript is gratefully acknowledged.
In making these acknowledgements I wish to stress that I accept all responsibility for the
content of this paper.
Appendix 1. Resources, exploration history and geology for selected porphyry

copper-gold and molybdenum deposits in Indonesia. Locations are shown in Fig. 4
Tapadaa
Resource: 43 Mt @ 0.54% Cu, 0.075 g/t Au.

History: Regional stream sampling program carried out by Endeavour Resources ( 1971-
73) in North Sulawesi identified several areas with anomalous Cu, including Tapadaa district
(200-800 ppm in - 80#). Initial follow-up (mapping with soil and rock sampling) confirmed the presence of porphyry Cu-style mineralization. Detailed investigations by Kennecott under a farm-in agreement from 1973 to 1975. Exploration proceeded from widelyspaced pitting through trenching to drilling ( 11 diamond drill holes, 1,222 m, supplemented
by 24 winke sludge holes). 4 small zones, each containing between 2 and 15 Mt of 0.20.4% primary Cu outlined. Additional resource of 20 Mt of supergene enriched Cu (0.61.0%). Total expenditure: US$1.5 M (4.2 M 1992 $).
Geology: Two major sulphide systems and 4 minor prospects largely confined to multiple
intrusions of quartz-diorite porphyry (Pliocene) within NW trending, structurally controlled blocks. Copper mineralization associated with early alteration consisting predominantly of quartz--chlorite-biotite-anhydrite, and in areas of better grades (0.2-0.4%) also
containing disseminated green sericite and albite together with albite-quartz and magnetite + quartz veinlets. Two secondary biotite samples yielded K/Ar ages of 5 and 2.5 Ma.
Sulphide contents (chalcopyrite, bornite, pyrite) typically low. Overprinted by sericite + quartz or clay, quartz-sericite-diaspore and/or andalusite_ pyrophyllite, corundum
and specularite assemblages with higher sulphide contents (mainly pyrite). Locally strongly
leached pyritic zones in advanced argillic rock overly supergene enriched blankets, 3 to 40
m thick, grading 0.5-0.8% Cu (Lowder and Dow, 1977).
62
Tombulilaw
Resource: Cabang Kiri East (CKE): 136 Mt @ 0.43% Cu, 0.58 g/t Au; Sungai Mak
(SM): 84 Mt @ 0.76% Cu, 0.39 g/t Au, Kayabulan Ridge (KR): 75 Mt @ 0.76% Cu,
0.33 g/t Au.
History: District identified during Endeavour's regional sampling program in North
Sulawesi (see above). Cu-in silt-anomalies: 250-1,100 ppm. Anomalous trains in main
rivers 10 to 12 km long. Exploration by Kennecott ( 1973-1976) began with reconnaissance
mapping and sampling throughout the district. 9 anomalous areas identified, characterized
by + 500 ppm Cu and + 5 ppm Mo in silt and pH of 4-6.5. Detailed mapping and sampling
at CKE (45 pits, 3 km of trenches) and KR (500 m of trenches). 3 targets at CKE drill
tested (6 holes, 1,070 m). An open pittable resource of 24 Mt @ 0.7% Cu and 0.75 g/t Au
outlined at CKE. Kennecott observed that outcropping mineralization was commonly
leached with cap rocks containing 100-300 ppm Cu and anomalous Au; Mo anomalies
flanking or coincident with Cu-Au anomaly. Following Kennecott's withdrawal, KB drill
tested by Endeavour in 1979; 6 holes (approx. 2,000 m), one of which intersected significant
Cu-Au mineralization. In 1980, the project was taken over by Utah International, which
carried out intensive investigations between 1980 and 1982, including additional stream
sediment sampling of 40 km of drainage, trenching ( + 100 km) and drilling at CKE ( 38
holes, 11,263 m), SM (51 holes, 11,864 m), KR ( 14 holes, 3,742 m) and Cabang Kanan
(CK) (3 holes, 1,095 m). Pre-feasibility study carried out in late 1982. Project not viable.
Total expenditure between 1973 and 1982: US$ 22 M (32 M 1992 $).
Geology: Porphyry Cu-Au mineralization associated with 8 multiple intrusions of quartz
diorite to diorite porphyries (Pliocene) intruded into basic to felsic volcanics; SM, CKE,
KR and CK largest deposits. Geometry of intrusions varies from cylindrical stocks at CKE,
vertical cylinder surrounded by zone of multiple-stage breccias at KR, to dykes at CK and
sill at SM. Syn- and post-mineralization hydrothermal breccias are common. Post-mineralization diatreme breccias at SM and CK cross-cut supergene mineralization. Alteration
assemblages consist of quartz-magnetite-biotite, albite-magnetite--chlorite-amphibole,
sericite-illite-chlorite and quartz-diaspore-alunite + pyrophyllite, showing complex relationships. K/Ar ages of 2.93 and 2.36 Ma obtained from secondary biotite. Several styles
of mineralization have been recorded. Hypogene Cu-Au mineralization at CKE is typical
of gold-rich porphyry deposits and is associated with magnetite, chlorite (after biotite),
albite and silica alteration. At KR it is largely confined to a major breccia complex with
pyrite and chalcopyrite filling open spaces and postdating pervasive biotite and magnetite.
CK mineralization is bornite-rich and hosted mainly by quartz-veined wall rocks. Supergene
chalcocite mineralization is dominant at SM (but chalcopyrite and bornite are also present ) ;
best developed in intensely veined and quartz-kaolinite-alunite altered intrusions. A similar
style, but less significant, is also present at CKE and KR (Lowder and Dow, 1978; Perello,
1994).
Malala
Resource: 100 Mt @ 0.14% MoS2.
History: Regional geochemistry survey by RTZ/CRA in Central Sulawesi in 1973 iden-
63
tiffed an anomaly in Takudan River (catchment + 20 km 2) of 245 ppm Cu, 390 ppm Pb,
340 ppm Zn and 15 ppm Mo. Follow-up sampling in 1976 led 7 km upstreams to tributary
that yielded 567 ppm Mo. Molybdenite mineralization discovered. Detailed exploration in
1977-78 in an area of 5 km 2 including mapping, extensive soil and rock-chip sampling,
contour trenching and drilling (21 holes, 3,873 m). Second drilling phase ( 15 holes, 3,991
m) combined with additional surface work in 1980-81 in joint venture with SANTOS Ltd.
Area relinquished in 1983. Total expenditure: US$ 5.8 m ( 10 m in 1992 $).
Geology: Molybdenite mineralization associated with late-stage granite differentiates in
the roof zone of a composite pluton emplaced during a late-collision magmatic event.
Intrusion dated at ~ 4 Ma. Mineralization developed near the intrusive contact over an area
of 4 km 2. Highest grades in steeply dipping, fault-controlled zone, 1,850 m long, 30-300
m wide and + 200 m deep. Alteration assemblages include early quartz-biotite-K-feldspar
and late carbonate-sericite/illite-chlorite. Zoning poorly developed. Vein alteration-mineralization paragenesis: 1) barren quartz, 2) quartz-apatite-K-feldspar_+ biotite-molybdenite-pyrite + magnetite, 3)
carbonate-sericite/illite-chlorite-pyrite-base metal
sulphide, and 4) calcite-hematite-siderite-anyhydrite-kaolinite. Mineralizing fluids: 400600C, 45-55 wt.% eq. NaCI (Van Leeuwen et al., 1994).
Tangse
Resource: 600 Mt @ 0.15% Cu, including 30 Mt @ 0.5-0.8% Cu, 0.02% Mo.
HistoD': Observation of altered, stockwork-fractured porphyry in a road cut during a
British-Indonesian government sponsored regional mapping/ geochemistry program in
northern Sumatera in 1976 was followed up by soil sampling showing an extensive area of
anomalous Cu-Mo values. Detailed exploration undertaken by CRA between 1979 and
1981 including deep augering ( 1980 holes), trenching ( 10.5 km), magnetics/IP (80 line
km) and diamond drilling ( 14 holes, 1,802 m). Soil geochemistry showed a central zone
of anomalous Cu/Mo with a halo of Pb/Zn/Mn, truncated by a major fault. IP outlined the
limits of the porphyry system and main quartz-sericite-pyrite-zones. Total expenditure:
US$1 M (1.5 M 1992 $).
Geology: Cu-Mo mineralization hosted by a muitiphase porphyry stock (7.5 2 km) of
predominantly quartz diorite composition. Intrusion of the porphyries and development of
the alteration-mineralization took place between 13 and 9 Ma. Early biotite alteration and
mineralization (0.1-0.2% Cu; 60-90 Mo) is surrounded by chlorite-epidote halo and
overprinted by structurally controlled quartz-sericite-pyrite assemblages, consisting of 2
subtypes characterized by the presence of chlorite and andalusite, respectively. The former
(best developed in the central part) is enriched in Cu and Mo, while the latter (mainly
found in outer zone) is depleted. The system has been subjected to oxidation and leaching
with patchy development of secondary Cu enrichment (Van Leeuwen et al., 1987).
Kaputusan
HistoD': Indonesian-German government sponsored exploration program of the Halmahera region, selected on the basis that it might represent a link between the PNG and
64
T.M. van Leeuwen/Journal of Geochemical Exploration 50 (1994) 13-90
Philippine porphyry Cu provinces. A regional stream sampling program followed by soil

sampling identified Kaputusan as a significant C u - P b - Z n - M o - A u anomaly, Detailed investigations undertaken between 1978 and 1984. Multi-element analysis of rock samples from
160 pits in an area of 6 km 2 outlined a distinct zonal pattern of anomalous Cu, Au, Mo, Bi,
Ba, Rb, Zr and K20 concentrated in two centres surrounded by a zone of anomalous Pb,
Zn, Sr, Mn, Ca, Na and Fe. Trenches (5,500 m) were dug across the anomaly for mapping
and sampling purposes. Ground magnetics not useful. Anomalous IP response from propylitic zone. Scout drilling ( 10 holes; 1,575 m) tested the two anomalous centres.
Geology: Three phases of tonalite porphyry intruded into andesitic volcanics. Porphyry
Cu-Au mineralization is mainly associated with the youngest phase, occurring in two
centres, which are potassically altered (mainly secondary biotite replacing hornblende and
in quartz veinlets) and surrounded by a propylitic halo. Overprinted by patchy, faultcontrolled quartz-sericite alteration. Cu-Au mineralization is associated with the centres of
potassic alteration. Grades correlate positively with mineralized quartz veinlet intensity,
The main primary non-silicate minerals are chalcopyrite and magnetite, occurring as both
disseminations and veinlets. Bornite locally present. In the southern zone a 40m thick
leached cap is present containing 0.44 g/t Au and 0.13% Cu. Secondary Cu enrichment is
minor (Bering, 1986).
Bulagidun
Resource: 14.4 Mt @ 0.61% Cu, 0.68 g/t Au.
Histo~: During Endeavour's regional survey in the early 1970s (see above) identified
as a high Cu background area. A regional sampling program carried out by BHP-Utah in

1986 (in joint venture with Placer and ANTAM) yielded anomalous Au, Ag, Cu, Pb, Zn
and As values from the Bulagidun river. Prospect located in 1987. Follow-up work included
soil and rock sampling, pitting ( 41 ), trenching ( 4,000 m), groundmagnetics and IP surveys,
and drilling (63 holes, 8,036 m).
Geology: Cu-Au mineralization is contained in 3 breccia bodies occurring peripheral to
a potassically altered but unmineralized igneous complex, varying in composition from
early diorite to quartz diorite to late tonalite, intruded into a pile of andesitic volcanics dated
at 9.4 Ma, Alteration paragenesis: (1) early actinolite, (2) biotite+ albite_+ K-feldspar _+magnetite, and ( 3 ) late sericite + clay + chlorite + quartz + carbonate ( dated at 8.75
Ma). Propylitic alteration occurs in peripheral zones. Tourmaline is spatially associated
with assemblages 2 and 3. The dominant sulphides are chalcopyrite and pyrite as disseminations and veinlets. Weak vein-controlled Au-Pb-Zn + As mineralization is associated
with the propylitic alteration. Oxidation with Au enrichment up to 30 m thick. No significant
supergene enrichment (Lubis et al., 1994).
Grasberg
Resource: 4,000 Mt @ 0.6% Cu, 0.64 g/t Au; mineable: 675 Mt @ 1.45% Cu, 1.87 g/t
Au.
Histoo': A Dutch geologist, J.J. Dozy, observed Grasberg in 1936 while on a mountain
climbing expedition in the central mountain range of Irian Jaya. He noted that it formed a
65
distinct vegetation anomaly and briefly described its geology. Deposit briefly investigated
in the mid-1970s by Freeport geologists, who recognized that it might represent a porphyry
Cu. Revisited in 1987. Encouraging surface sample results led to a drilling program, which
produced the first ore-grade intercepts in 1988. Development of an open pit began soon
thereafter, with production commencing in late 1989. Exploration is still continuing. By the
end of 1992 more than 160 km of diamond drilling had been carried out.
Geology: The orebody occurs in a 3 km 2 circular diorite to quartz monzonite intrusive
complex and has a drill tested vertical extent of 1,500 m. Three main magmatic phases have
been recognized, forming concentrically nested intrusions emplaced in a diatreme-maar
volcanic setting. Multiple mineralizing events related to these intrusive phases formed two
distinct, yet spatially coincident orebodies. Alteration associated with any particular intrusive event is typically zoned from potassic (K-feldspar and biotite) through phyllic to
propylitic outward from the center. Overprinting has resulted in complex alteration and
mineralization patterns, and commonly in enhancement of grades. Strong development of
stockwork quartz veining and anhydrite are characteristic features. The primary sulphide
content is high ( + 5%) and consists of pyrite, chalcopyrite, bornite, digenite and covellite.
Gold is present as discrete microscopic inclusions within the Cu-sulphides. Cu and Au show
a strong positive correlation. The youthfulness of the system ( ~ 3 Ma) and rapid rates of
erosion ( ~ 2 km of lithocap removed) have prevented the development of significant
supergene oxidation (max. 30m) and Cu redeposition (max. 100 m and < 0.5 times original
hypogene grades). No redistribution of Au has taken place in the weathering zone. Large
sulphide/skarn bodies occur directly adjacent to and surround much of the intrusive complex
at depth (McDonald and Arnold, 1994).
Batu Hijau
Histor5': Reconnaissance stream sediment sampling program carried out by Newmont in
Sumbawa in 1987. Sampling of a river draining the Batu Hijau area yielded up to 15 ppb
Au in BLEG and 135 ppm Cu in - 80#. Title obtained over source area in 1989. Followup sampling yielded 169 ppb Au in BLEG and 580 ppm Cu in silts 1 km from the deposit.
Investigations focused initially on Au mineralization occurring peripheral to the porphyry
system. Porphyry prospect identified in early 1990 following the observation of heavily
malachite-stained float: strong Cu mineralization in outcrop; ridge and spur auger sampling
outlined > 0.1% Cu over 0.6 1.2 km; followed by detailed trench sampling: > 0.3% Cu
and > 0.2 ppm Au over 900 m X 300 m, with > 30 ppm Mo annular zone around the Cu/
Au anomaly. Drilling commenced in early 1991 and was still in progress in July 1993
(37,000 m in 50 holes).
Geology: Cu/Au mineralization is hosted by a tonalite intrusive complex, and diorite and
meta-volcanic wallrocks. Orebody is cylindric to conical, and has a vertical extent of + 650
m. Bulk of the higher grade mineralization associated with tonalite stock showing pervasive
secondary biotite alteration and quartz-sulphide+ magnetite veining. The potassic core
zone grades outward into extensive propylitic alteration. Overprinted by widespread fracture
controlled sericite-chiorite, and minor sericite and albite alteration. Sericite-kaolinite and
kaolinite-alunite-pyrophyllite assemblages occur near surface. Less altered and mineralized
66
dykes intrude the centre of the tonalite stock, forming a geochemical low. Oxidation extends
up to 85m below the surface, but supergene enrichment weakly developed (Meldrum et al.
(1994).
Dodo-Elang
Histo~: In 1910, a Dutch soldier returned from the area with a quartz-pyrite sample
assaying 2 g/t Au. No further work was undertaken by the Dutch. The prospect was identified
independently during Newmont's 1987 regional reconnaissance stream sediment sampling
program in west Sumbawa as the strongest multi-element geochemical anomaly in the
COW. During 1988, extensive soil sampling and trenching identified a Au-bearing stockwork over an area of 700 m X 2 0 0 m; drill tested in 1989 (2,286 m in 20 holes; overall
grade < 1 g/t Au). Following the discovery of Batu Hijau, the geochemistry at Dodo was
re-evaluated and porphyry-copper mineralization was subsequently found in the same area.
Tested by 5 holes in 1991. Further drilling planned in 1993/94.
Geology: Andesitic volcanics are intruded by high-level granodiorites, and small bodies
of diorite and feldspar porphyry. Alteration is widespread and intense. Potassic (2nd biotite), propylitic, phyllic and advanced argillic alteration styles have been observed, showing
complex relationships. The advanced argillic alteration is accompanied by low grade Aubearing quartz veins and stockworks containing pyrite and enargite. It appears to be superimposed on porphyry-style Cu-Au mineralization, which is widespread but generally of
low grade. Better grades ( > 0.5% Cu and 0.5 g/t Au) mineralization intersected to date
occurs in potassically altered rocks overprinted by chlorite-epidote alteration. The mineralization occurs both in quartz vein and as disseminations.
Appendi x 2. Resources, exploration history and geology for selected alluvial gold
deposits in Indonesia. Locations are shown in Fig. 8
Monterado
Resource: Proven-probable reserves: 35 Mm 3 @ 169 m g / m 3 Au (1989).
Histo~: Mined by immigrants from South China between 1720 and 1850. Their kongsi
operations were replaced by concessions administrated by the Dutch in 1853. Investigated

by the Geological Survey in early 1970s using bangka drills and resistivity profiling; 1.5
Mm ~ @ 186 m g / m 3 Au outlined. Scout drilling by BP Minerals in 1984, followed by grid
drilling in 1986. Feasibility study and decision to mine in 1987; based on reserves of 36
Mm 3 @ 193 m g / m 3 Au outlined by 936 holes on 200 x 50/100 m grid, and interpreted to
occur in a simple sheet-like body. Subsequent in-fill drilling (2,000 holes) in 22% of the
area showed the deposit to be more complex and of lower grade. If remaining area drilled
in same detail, average grade expected to decline to 125-148 m g / m 3 Au. Start up in 1989
with 2 bucketwheel suction dredges. From the ~tart the operations were hampered by adverse
ground conditions (including logs) and frequent mechanical failures. The mine was closed
in 1990 after having produced 595 kg of gold. Re-opened by a domestic company in 1992.
Geology: The deposit extends over some 17 km of the course of the present Raya river,
67
close to the headwaters. It consists of irregular channels and pods of auriferous material
which have limited lateral continuity. Higher grades largely confined to basal coarse sediments, the distribution of which is intimately related to irregular bedrock topography. There
is evidence of reworking of older Au-bearing sediments. Gold fineness is in the range of
800 to 850.
Sungai Raya
Resource: 72 Mm 3 @ 171 mg/m 3 Au; mineable: 27 Mm 3 @ 362 mg/m 3 Au of wash
material (1989).
History: Deposit located downstream of Monterado. Investigated by the Geological
Survey in the early 1970s; 12.5 Mm 3 @ 121 mg/m 3 Au outlined. A mechanical bangka rig
program was started by Duval in 1987, initially on a widely spaced pattern. Fill-in drilling
along and between lines was undertaken to a density of holes spaced 100 m apart on lines
separated by 200 m or 300 m. A feasibility study was undertaken in 1989. Duval withdraw
in the same year after having spent US$ 7.5 million. In 1992 TRC Resources acquired an
85% interest in the project.
Geology: The deposit occurs in the paleo-Raya alluvial fan system, which is about 50,000
years old based on C-dating of timber. Gold-bearing ( + 100 mg/m 3) basal horizon consists
of coarse sand with occasional cobbels (rare in the downstream half of the deposit) and
wedges out to the flanks of the deposit. It contains a series of richer zones both along and
accross the basal horizon corresponding to original channels. The overlying sediments, 0.3
to more than 6m thick, become increasingly fine towards the top of the sequence, and contain
much lower grades of gold. Bedrock is relatively smooth. The deposit has been dissected
by recent drainage channels. Gold particle size is mostly in the 250-450/~m range. The
finess is 850. Zircon and ilmenite are significant by-products (399 and 232 g / m 3respectively
in the ore zone).
Kapuas
Resource: Indicated: 16 Mm 3 @ 157 mg/m 3 Au (1992).
History: Small scale mining has been carried out in the COW area by local people for
many centuries probably, but certainly quite extensively over the last two decades. Over 30
separate mining areas are now recognized ranging in size from 2 hectares up to over 100
hectares. Since 1982 P.T. Sanggau Mining-Mineral company in association with a number
of international companies has carried out quite extensive exploration programs on a number
of the better known and larger terrace deposit. Since Ashton's involvement with the COW
in 1989, extensive channel sampling has been carried out over all areas exposed by local
miners. The best results to date have come from drilling a well developed palaeochannel
deposit located in a palaeomeander. The deposit, formed downstream from a tight bend in
the palaeomeander, has approx, dimensions of 3,000 m long, 800 m wide and 10 m thick.
A total of 47 bangka and 63 RC air core holes on lines at 400 m with 100 m hole spacing
have so far been drilled. Ongoing exploration is concentrating on the modern Kapuas River
where reflective seismic surveys are planned to evaluate possible deposits under the bed of
the river. Expenditure 1987-92: US$ 3 M.
68
T.M. van Leeuwen/ Journal of GeochemicalExploration 50 (1994) 13-90
Geology: Higher level and low lying Pleistocene alluvial gold deposits occur adjacent to
the Kapuas River throughout the 120 km length of the COW area. ,These deposits are
remnants of what was once a much more extensive gravel blanket developed in a fluvial
tract in an E-W trenching graben-like structure at the W-end of the Melawi basin. In the
period of maximum lowering of sea level during the Wisconsin glaciation, entrenchment
of the Proto Kapuas occurred. This was subsequently filled with sediment derived largely
from erosion of older Pleistocene terrace material. It is within the older Pleistocene terrace
and younger palaeochannel alluvium that gold occurs.
Ellahula
Resource: Proven + probable: 9.6 Mm 3 of wash @ 333 mg/m 3 Au; stripping ratio 1.3:1 ;
Inferred: 60 Mm 3 of wash @ 313 mg/m 3 Au (1992).
History: Dutch dredging operation produced 60 kg between 1904 and 1908. COW signed
by East West Minerals in 1987. Bangka drill program started in 1987 (approx. 1,200 holes,
11,000 m). Pre-feasibility studies carried out between 1989 and 1992; the basic concept for
exploitation is dry mining by standard earth moving equipment into a mobile plant.
Geology: The deposit consists of remnants of an extensive auriferous gravel sheet laid
down over a 200 km section before the Melawi River cut down to its present level, forming
terraces up to 20-30 m and locally 100 m above the river bed. The gravels have been derived
from a distant source and are well sorted. Thickness is generally about 3 m. These resources
are covered by clay and silt with overburden to pay gravel ratios ranging from 0.7 to 2.6.
The gold occurs in a particle size range from 0.1 to 0.5 mm. Gold values do not appear to
be concentrated in channels. Zircon is a significant byproduct.
Ampalit
Resource: 11.7 Mm 3 of wash @ 321 mg / m 3 Au and 1:2 stripping ratio in river channel + 6
Mm 3 in terraces (1986).
History: Rumours of local people mining alluvial Au near Kasongan were checked by
geologists of Pelsart and Jason Mining in 1984. This indicated presence of extensive
auriferous alluvials. Work started early 1985. 1986 reserves on which decision to mine was
based, were originally delineated by 760 bangka holes drilled at 25 m centres along lines
spaced at 400 m and 23 caisson lined pits. Reserves subsequently reduced by infill drilling.
Start up in late 1988 with 2 bucket wheel suction dredges, one for stripping, the other for
mining the ore zone. Mining of terraces by dry methods. From the outset Au recovery was
considerably lower than predicted from the drilling, partly due to excessive clay and very
small gold particle sizes. Dredging operations closed at the end of 1992 following exhaustion
of mineable reserves. Total production 1.5 t Au (i.e., <30% of 1986 reserves) 0.4 t Ag
and 12,500 t of zircon as a byproduct. Terrace mining continued until the nine officially
closed in June 1993.
Geology: The main deposit consists of a series of Au-bearing sands and gravels in paleo
and more recent channel fills and high lying terraces overlying mudstones and discontinuous
peat and lignite horizons. The main channel has a maximum depth of 13 m and a average
width of 200 m with the basal pay zone being overlain by 2-3 m of barren sandy clays.
69
Channel Au particles are smaller and purer than the terrace Au (80-140/zm and 970 fine
as against 0.3-0.8 mm and 860 fine). Channel Au may have a colloidal origin (see text).
Cembaga Buang
Resource: Proven: 14 Mm 3 of wash @ 249 m g / m 3 Au; Possible: 9.4 Mm 3 of wash @
193 m g / m 3 Au.
History: A scout bangka drilling program (430 holes on 400 m line spacings at 25 m
intervals) was carried out by Pelsart/Jason in 1987 after recognition that Au being shed
from terraces at Ampalit could produce rich reworked Au-bearing alluvium in the Cembaga
Buang. This together with pitting indicated a reserve of 27.8 Mm 3 @ 233 m g / m 3 Au.
Further defined by infill drilling over 60% of the deposit (2059 holes). Dry mining of
selective targets is being considered, as the river is not amenable to dredging.
Geology: The placer deposits consists of Au-bearing alluvium infilling two series of
paleochannels of Plitr-Pleistocene and Late Pleistocene age respectively, which occur in a
fairly complicated configuration of elevated older paleochannels, as well as paleochannels
that crisscross or are incised by younger channels. Gold particles are coarser than those of
the nearby Ampalit deposit. The + 250/zm fraction consists dominantly of copper-coloured
platelets commonly with darker microcrystalline rims of Ag-poor and/or pure, crystalline
Au. Zircon is the dominant associated heavy mineral.
Tewah
Resource: 16.2 Mm 3 @ 273 m g / m 3 Au, including measured reserves of 5.9 Mm 3 @ 28 I
m g / m 3 Au (1992).
History: COW (Ashton-Mercu Buana joint venture) signed in 1987. Reconnaissance
bangka drilling (85 holes) over the flood plain area of the Kahayan fiver showed erratic
and generally low gold distribution. Followed by photogeological/SLAR interpretation.
2nd stage drilling (97 holes) carried out over a number of tributary fiver sections (target:
Ampalit-style deposits); results disappointing. Reconnaissance channel sampling over all
"older" terrace alluvium gave indications of 200 m g / m 3 over a total thickness of up to 6
m. Global resource of 400 Mm 3 @ about 200 m g / m 3 Au inferred. Bangka drilling at 200
m 200 m centres at Jurit-Belawan gave resource of 28.38 Mm 3 at 184 m g / m 3 Au. Bulk
sampling confirmed drilling results. Feasibility study undertaken based on a number of
processing units. A bangka drilling program to test gravel deposits within the modern
Kahayan River channel commenced in 1993. Initial results suggest that the gold-beating
gravels have good vertical and lateral continuity with channel widths of about 150 m, wash
thicknesses of 4-6 m and grades of + 200 mg A u / m 3.
Geology: Tertiary basement rocks are unconformably overlain by up to 4 fluvial units of
Pleistocene to recent age within a North trending graben-like structure forming the valley
of the Kayahan River. These include 2 units of older alluvial which form prominent terraces
up to 50 m above the present level of major drainage. Younger recent alluvial is associated
with present drainages. Both the older and younger units are gold-bearing.
70
Singingi
Resource: 17.2 Mm 3 @ 149 m g / m 3 Au (1990).

History: Dutch dredging operation (Bengkalis) 1937-40 and 1942-45 and 1964-70.
Production up to 1958:2.2 t Au; estimated recovered grade 120 m g / m 3 Au. Worked by

ANTAM from 1964 to 1970. Dredge sold for scrap. In 1970, ANTAM drilled 652 bangka
holes (3,887 m) over 8 km in the northern part of the Singingi valley. From 1973 to 1975
RTZ/CRA drilled 16 lines of bangka holes over a length of 40 km (233 holes, 2,664 m),
outlining a resource of 180 Mm 3 @ 90 m g / m 3 Au. Program of pilot plant trials initiated by
Minindo in 1990. No further activities.
Geology: The alluvial deposits occupy broad valleys cut in Tertiary sedimentary rocks,
including Singingi valley with bifurcating pay zone of 20-30 km length, 600-1,400 m
width, 6-16 m thickness, and Lembu valley (3-4 km, 350-650 m, 4-10 m). There are two
alluvial successions: a lower one of sand, silt and clay, and an upper one of quartz-sandstone
pebble wash. Gold values are found largely in the upper succession. The most likely source
of the gold is from quartz veins in metamorphic rocks in the adjacent mountains.
Woyla
Resource: Proven: 11.5 Mm 3 @ 196 m g / m 3 Au (1988).

History: Long history of indigenous gold mining in west Aceh. In the late 1930s a Dutch
company carried out extensive exploration in the Woyla area involving thousands of banka
holes. Two dredges brought into operation in 1939. All data destroyed during the Japanese
invasion in 1942. Total estimated production 980 kg Au from 5 Mm 3 of gravel. Investigated
by a number of companies in the 1970s, including Associated Mines ( 1972-77, 21 bangka
holes, and 14 pits) and AMAX ( 1978-80, 130 churn drill holes). A local company, P.T.
Ara Tutut, obtained title in 1983 and began mining in late 1988. Operations were suspended
in late 1992; total production 370 kg Au. Averaged recovered grade only 104 m g / m 3 Au
as against a calculated in-situ grade of + 200 m g / m 3 Au. Reasons: ( 1 ) overvaluation, (2)
recovery problems and (3) low grade material present between pay streaks, which had to
be dredged.
Geology: Two types of alluvium: ( 1 ) "older alluvium" characterized by strong weathering of its components and occurring in terraces 7 and 18 m above the present Woyla river,
and (2) recent/sub-recent alluvium, characterized by fresh coarse components, and relative
looseness and high sand content of the matrix; forms low alluvial flats adjacent to the river.
Both types contain Au, but only the latter is dredgeable. Depth to bedrock in the alluvial
flats is variable, up to 23 m. Most of the Au is usually found within the basal conglomeratic
part (3-4 m) of the alluvium, with the highest grades occurring at the bedrock contact, and
is largely associated with burried paleochannels. The pay streak pinches out between flats,
but broadens out in each flat, up to 400 m. Gold occurs together with cinnabar, platinum,
magnetite and minor native mercury and has an average fineness of about 930.
71
Appendix 3. Resources, exploration history and geology for selected primary gold
deposits in Indonesia. Locations are shown in Fig. 8
Kelian
Resource: 97 Mt @ 1.85 g/t Au; mineable 53.5 Mt @ 1.97 g/t Au (1989).
History: Alluvial gold discovery by local Dayaks in 1947; mined until 1963 involving
+ 1,000 people. Second boom started in 1979 ( 10,000 people). Alluvial deposit inspected
by RTZ/CRA in 1975. Too small, but high grade (400--800 mg/m 3) and juvenile nature
of gold suggested significant primary source upstream. Located in 1976 by stream sediment
sampling and geological observations. Stage 1 ( 1976-1978): Soil sampling, trenching and
bangka drilling (of wheatered rock) outlined 2 areas of + 3 ppm Au (E and W Prampus).
Scout drilling yielded average grade of only 2 g/t Au. Exploration halted. Stage 2 ( 19791981 ): Rise in gold price and reinterpretation of geology gave new impetus. Further drilling
outlined a resource of 20-30 Mt at 2 g/t Au. COW applied for. Stage 3 (1985-1986):
Following signing COW major program undertaken including IP, Hg in soil sampling,
extensive trenching and drilling. Preliminary metallurgical testing suggested poor recoveries
in sulphide zone (av. 50%). Emphasis shifted to oxide zone; only a few Mt. were outlined.
Stage 4 ( 1987-1988): Breakthrough came with the discovery of a high grade zone with
good recoveries at the base of the E. Prampus ore body. Follow-up drilling significantly
increased reserves. Drilling of 6 widely spaced holes of 500-600 m indicated presence of
high grade mineralization outside known ore zones, further enhancing resource potential.
Feasibility study in 1989. Construction completed December 1991. Pre-construction costs
(including 60,000 m of core drilling): US$ 27 m. First year of production: 14.5 t Au,
15 TAg.
Geology: Alteration/mineralization system 1 km 2 in diameter, with vertical extent of at
least 600 m; contains 2 main orebodies (East and West Prampus) and 4 smaller zones.
Spatially associated with Lower Miocene diatreme and subvolcanic andesitic bodies
intruded into an Eocene tuff/sediment sequence. Genetically the mineralization is probably
related to post-andesite felsic magmatism, which gave rise to phraetomagmatic eruptions,
forming several diatreme breccia pipes. Hydrothermal brecciation common feature in all
zones; quartz veining and silicification poorly developed. Gold mineralization predominantly associated with a carbonate-base metal event preceded by a sericite-adularia event
and followed by late kaolinite-Fe carbonate-cinnabar deposition. Pyrite ubiquitous ( 15%). Vertical zonation of carbonate species typical feature; resulted from complex fluid
mixing; higher Au grades commonly at interface of two carbonate zones. Mineralizing
fluids relatively hot ( + 300C) and saline ( > 10%). Pyrrhotite becomes common to the
north and sphalerite progressively more Fe-rich, indicating hotter, more reducing conditions
(Van Leeuwen et al., 1990; Leach and Corbett, 1993).
Mt. Muro
Resource: 10.4 Mt @ 3.8 g/t Au, 95 g/t Ag, in 10 deposits + eluvial resource of 3.3 Mt
@ 2.15 g/t Au, 13 g/t Ag; mineable: 8.9 Mt @ 4.19 g/t Au, 93 g/t Ag.
History: Possibly investigated by the Dutch. In the early 1980s, local miners began to
72
exploit near-surface oxidized, high grade zones of quartz veins by digging trenches and
underground workings up to a depth of 30 m. (they were removed from the area in 1989).
General area scouted by Pelsart/Jason geologists in 1983, followed by reconnaissance
sampling and mapping, leading up to signing of COW in 1985 with Duval as major
shareholder. Subsequent work included stream sediment sampling ( l sample per 5 kmZ).
Prospective areas tested by trenches and diamond drilling ( 87,500 m in 880 holes) during
1985-1991. Expenditure: US$ 35 M (incl. 5 M for infrastructure). Ashton carried out a
feasibility study under an option agreement in 1992. Additional drilling of 20,000 m in 430
holes ( mostly R.C.) with the aim to firm up open-pittable reserves up to 50 m depth. Costs:
US$ 6 M. Decision to mine taken and option exercised in late 1992. Construction commenced in 1993.
Geology: Within an area of 120 km 2, Au-Ag mineralization is hosted by a series of quartz
veins and breccias, vertically emplaced in andesitic rocks in NNW and EW structural zones
up to several km long. Lodes vary in width from cms to several m, are up to 1,100 m long
and have a vertical extent of up to 250 m. Gangue minerals are quartz with subordinate
adularia, calcite and rhodochrosite; electrum is intimately associated with sulphides. Quartzillite-pyrite envelopes around veins. Mineralizing fluids: 207-262C and ~<4.1 eq. wt.%
NaC1. Hydrothermal brecciation main control on mineralization. Erratic supergene Au
enrichment up to a depth of 25 m (Simmons and Browne, 1990).
Masupa Ria
Resource: 0.3 Mt @ 12.77 g/t Au, 85 g/t Ag.
History: Mineralization discovered following logging in the area in the mid- 1970s. Local
miners subsequently developed shafts (up to 50 m deep) and adits at several occurrences,
mostly at Ongkang. Preliminary exploration undertaken by Anaconda in 1984 in joint
venture with ANTAM. Their interest was sold in 1985 to BP Minerals, which carried out a
major program until 1989 with the main focus on Ongkang. Over 15 prospects investigated.
Work included a SAR survey, detailed mapping and rock sampling, trenching and diamond
drilling (7,846 m in 50 holes; 6 prospects). VLF and IP/resistivity over the Ongkang silica
cap clearly showed where the cap is thin and where it is crosscut by prospective structures.
Total exploration costs: US$ 6 M.
Geology: Mineralization is hosted by an andesitic volcanic centre (Lower Miocene),
which is weakly to strongly altered over an area in excess of 100 km z. Early intense
silicification forms extensive alteration zones ( "silica caps" ). Numerous quartz veins up
to 10 m wide, controlled by steep structures trending 060 , 290 and 330 , occur throughout
the district together with zones of quartz stockwork and hydrothermal breccias. Mineralization is restricted to zones of a few tens meters in length and typically associated with
base-metal sulphide bands. Adularia is virtually absent. Late acid-sulphate alteration overprints all vein systems. The Ongkang vein zone (390 m long, up to 30 m wide; 200 m
vertical extent) is the most important mineralized structure; it cuts a silica cap. Alteration
mineralogy and fluid inclusion data (250-290C) suggest a minimum depth of 400 m below
the paleo-water table (Thompson et al., 1994).
73
Mirah
Resource: 3.8 Mt @ 2.12 g/t Au, 53 g/t Ag, including mineable reserves of 2.7 Mt @
2.0 g/t Au, 54 g/t Ag.
History: COW area taken out by Pelsart/Jason on the basis of reported presence of
hydrothermally altered volcanics and projected extension of the central Kalimantan gold
belt. Interpretation of infra-red air photos and SLAR identified several targets. Ground
checking in 1986 found Au at Mirah. Local mining began around the same time. Initial soil
results were disappointing; subsequent trenching (658 m) and bangka drilling showed soil
to be strongly depleted in gold. Drilling (313 RC holes, 21,872 m; 21 DD holes, 1,635 m)
combined with trenching between July 1987 to December 1988; core recovery very poor.
20 m shaft excavated in late 1990 and preliminary heap leach tests carried out, showing
leaching of de-slimed coarser fraction may be viable. Pre-feasibility study completed in
July 1993.
Geology: Mineralization occurs in four 20--100 m wide and 600-1,500 m long zones of
quartz stockworks, hydrothermal breccias and massive veins located along N-NW trending
fractures. Host rocks are intensely argillized pyroclastics bounded to the west by an andesite
plug. The primary mineral suite consists of free gold, electrum, acanthite, pyrite (1-3%),
marcasite and arsenopyrite. Vertical zonation of metal grades shows a near surface depletion
of Au and Ag with enrichment at depth of 18-25 m. Below 25 m Au remains faidy constant,
whereas Ag decreases with depth.
Muyup
Resource: 0.3 Mt @ 2.3 g/t Au.
History: Alluvial gold (mined by local Dayaks) was observed at Muyup during a recon-
naissance survey in 1986. Work undertaken by a joint venture including Jason Mining and
Pancontinental in 1987 included geologic mapping, and stream sediment, pancon and
rockchip sampling; 5 Au-bearing vein systems identified, 2 of which were drill tested during
1987-88 ( 15 holes 2,451 m). Illicit mining activities mushroomed in early 1986, quickly
escalating from insignificant alluvial panning to hardrock operations utilizing mechanical
stamp mills. This involved over 700 people digging shafts 2 to 16 m deep. By the time the
exploration program was stopped in 1990 (expenditure: US$ 4.3 M) over 25% of the
resource had been mined out.
Geology: Gold mineralization is hosted by predominantly andesitic volcanics intruded
by intermediate porphyries, and is associated with shallow ( < 30 m) and narrow ( 1-5 m)
hydrothermal breccias and quartz-stockwork veins consisting of chalcedonic silica and finegrained quartz with minor adularia, carbonate and sulphides mantled by clay-rich envelopes;
overprinted by late kaolinite, dickite and siderite assemblages. High grade mineralization
( I0-100 g/t Au) occurs in small pods of polyhasal breccia enclosed by diffuse zones of
lower grade ( < 1 g/t Au) stockwork. The presence of illite and interlayered illite, fluid
inclusion temperatures averaging 230C, enrichment in As, Sb and Hg, and the presence of
silica caps suggests (a) near paleo-surface hydrothermal system(s) (Wake, 1991 ).
74
GunungMas
History: Found by local inhabitants around 1895. Intermittently mined by the Dutch
(underground) between 1901-1934, and by local miners since 1937. Between 1972 and
1990 several attempts were made by domestic companies with foreign partners/consulstants
to mine the deposit, including decomposed eluvial material.
Geology: Cretaceous granites intrude a phyllite sequence. Commonly high grade ( up to
150 g/t), but narrow (few cm to 3 m) fissure veins and stockworks with quartz, pyrite,
arsenopyrite and lesser base metal sulphides and argentite in granite; surrounded by narrow
envelopes of silicified rocks with low grade mineralization. Gold is also present in hornfelsic,
pyritized contact zones and more distal in limonitic fracture within phyllites. It is much
coarser than the gold mineralization hosted by the intrusions.
Buduk
Resource: 1.5 Mt @ 1.5 g/t Au.
History: Site of artisan mining by Chinese immigrants; predominantly sluicing of surface
elluvial material and some hard rock mining. Investigated by Homestake during 1989. Work
included 17 km of gridding, mapping and rock chip sampling, test pitting, soil auger
sampling, ground magnetics, SP and IP/resistivity. Test drilling of 2 targets (913 m in 19
holes). Subsequently drilled by Equatorial Mining (no information).
Geology: Stacked fiat-lying lenses of pyrite and pyrrhotite skarn with associated native
gold and chalcopyrite occur within a sequence of felsic tufts and tuffaceous sandstones,
which are strongly argillized and locally hornfelsed. No intrusive rocks have been located
in the area.
Sungai Keruh
Resource: Oxidized: 3.3 Mt @ 1.14 g/t Au; Primary: 1.0 Mt @ 4.08 g/t Au
History: Joint venture between Pelsart and ANTAM signed in 1987 covering an area of
5,000 km ~. Follow-up of Au-As in-silt anomaly identified during a regional program led to
an area with altered rocks. Grid auger sampling followed by trenching. Diamond drill testing
in two separate programs during 1990-92 (2,898 m in 15 holes). The mineralization is
considered too deep and too low in grade to be economic.
Geology: Mineralization is hosted by a potassic altered monzonite porphyry intruded into
volcanics and sediments adjacent to a thrust zone separating these rocks from ultramafics.
It is both epithermal in style with Au being associated with quartz-adularia veins, and
mesothermal, occurring as "porphyry-style" disseminations associated with potassic alteration and later carbonate veins.
Timburu
Resource: 1.25 Mt @ 3.3 g/t Au (Oxide zone)
History: COW signed by Pelsart in 1987. First indications: Au-As in-silt anomaly.
Follow-up work found mineralized outcrop averaging 50 g/t Au. A deep augering and
75
trenching program was followed by drilling in 1991 (11 holes totalling 626 m) which
indicated the local geology to be highly complex. Further RC and diamond drilling commenced in 1993.
Geology: Gold mineralization occurs intermittently over a strike length of 9 km, predominantly in silicified and brecciated ultramafic rocks around phyllically altered quartz--diorite
porphyry intrusions in an intensely faulted zone. Silicification and associated quartz veining
with pyrite, arseniferous pyrite and sulphosalt strongest developed in zones of earlier
carbonate alteration (of metamorphic origin). Degree of crystallinity of illite/sericite in
adjacent porphyries and common presence of cockscomb textures in larger quartz veins
suggests mesothermal conditions. The primary mineralization is capped by a zone of oxidized material containing free gold and telluride compounds.
Ratatotok deposits (including M esel )
Resource: 12.25 Mt @ 5.21 g/t Au, in 4 deposits; including 7.75 Mt @ 6.89 g/t Au at
Mesel.
Histo~: Gold mining history extends back to at least the 1850s. Mined by the Dutch
between 1900 and 1921; total recorded production 5 t Au, mainly from shallow elluvials
and some underground workings. The Dutch investigated Mesel, but were unable to liberate
the highly refractory gold. More recently, up to 8,000 local miners worked in the area before
being removed in 1989. Reinvestigated by Newmont since 1986. Initial work directed at
the old Dutch mine workings. Dutch exposures at Mesel were sampled in 1988. Follow-up
work consisted of detailed mapping, rockchip and channel sampling of outcrops, and grid
auger sampling. This was augmented by airborne magnetic and radiometric surveys, and
localized ground magnetic surveys. Drilling commenced in 1987. By the end of 1992 more
than 34,000 m had been drilled. Full-scale feasibility study commenced in 1993. Estimated
exploration (including regional)-feasibility expenditure: US$ 30 m.
Geology: Mineralization is present over an extensive area ( > 40 km 2) in one main deposit
(Mesel) and a number of smaller ones. Several styles are developed within Upper Miocene
limestone enclosed by andesitic volcanics and include ( 1) Carlin-like disseminated micronsized Au in arsenian pyrite with associated As-Sb-Hg-T1 in weakly silicified, dolomitised
carbonate and in jasperiod units (Mesel) ; (2) Au deposited with quartz and calcite in openspace paleokarst breccias, which locally pinch out downwards into veins; and (3) residual
quartz-clay breccias. With the exception of Limpoga, the mineralization is characterized
by very low Ag and base metal values. Primary fluid inclusion homogenization temperatures
at Mesel are around 155C (late phase), whereas higher temperatures (220-270C) were
obtained from the paleokarst deposits (Turner et al., 1994).
Gunung Pani
Resource: Inferred: 30 Mt at 1-1.5 g/t Au.
History: Dutch prospect. Intermittent exploration by Endeavour Resources between 1972
and 1980 under a COW. In 1980, the COW was taken over by Utah International (which
subsequently merged with BHP). In late 1986, the COW was terminated and BHP/Utah
entered into a joint venture with ANTAM, which took out a KP over the area. Work
76
undertaken between 1982 and 1992 included detailed mapping, trenching, rock sampling
and drilling (4,625 m in 29 holes). Following BHP/Utah's withdrawal, the area was taken
over by local miners.
Geology: Gold mineralization is hosted by rhyodacitic lavas, breccias and pyroclastics
interpreted as a dome complex. It is associated with silica, sericite-carbonate, pyritechlorite, quartz-adularia and argillic alteration styles. Gold is held in cm-wide zones of
brecciation, or in openings coated by limonite or quartz and adularia crystals. Higher Au
grades correlate with increased silicification, stockwork fracturing and quartz veining.
Oxidation extends to a 120 m depth. The mineralization is partly controlled by NNE to NE
trending structures. Gold was deposited by mixing of high temperature (300C) and moderately saline (5 wt.% NaCI) fluids with dilute, low temperature ground waters (Kavalieris
et al., 1990).
Motomboto
Resource: 1-3 Mt > 1.5 g/t Au, 60 g/t Ag, 2.0% Cu.
History: Identified as a weak Cu-in-silt anomaly by Kennecott in 1974; outcrop of silicapyrite rock with anomalous Cu and Au located. Enargite-type mineralization recognized by
Utah geologists in 1980. Followed-up in 1984-85, including 1,900 m of drilling in 9 holes.
Since then investigated in joint venture with ANTAM. Exploration included trenching, soil
augering, geological mapping, IP and magmatic surveys and drilling (3,157 m in 20 holes ).
Geology: High-sulphidation Cu-Au-Ag mineralization occurs at the contact between a
dome-like dacite porphyry of Late Pliocene age and older volcanics, close to the Sungai
Mak porphyry Cu deposit. Three zones of mineralization have been identified, partly covered
by Pleistocene volcanics. Alteration zonation consists of residual and chalcedonic silica
surrounded progressively by quartz-alunite, quartz-kaolinite, and chlorite. Two styles of
mineralization: (1) Cu-Au-Ag + Zn associated with multiphase, hydrothermal breccias
cemented mainly by pyrite, enargite, luzonite and marcasite, and (2) A u + A g + C u in
vuggy silica zones (Perello, 1994).
Doup
Resource: 12 Mt @ 1.6 g/t Au.
History: Old Dutch prospect ( ? mine) with long history of local miners' activity. Detailed
investigations during 1988-1991, carried out by Placer Dome in joint venture with ANTAM
and BHP-Utah, including trenching, geologic mapping, rock sampling, soil augering, IP
and ground magnetic surveys, and drilling (7,252 m in 39 holes).
Geology: Mineralization is controlled by multi-directional structures, mostly hosted by
porphyritic andesite, and associated with quartz-rhodochrosite-base metal veins and
quartz-pyrite stockwork; some base metaI-Au replacement mineralization in interbedded
sedimentary rocks. Pervasive kaoline-illite and pyrite alteration envelopes the mineralization.
77
Lanut
Resource: Indicated: 19 Mt @ 1.41 g/t Au.
History: Discovered by the Dutch at the turn of the century and mined between 1913 and
1931 (5 t Au, and 4 t Ag including Tobongan and Mintu); since early 1980s it has been a
major local mining area. Detailed exploration conducted by Placer Dome. between 1986
and 1990 in joint venture with ANTAM and BHP-Utah, including geologic mapping,
geochemical sampling, IP and ground mag surveys, and drilling (4,560 m in 47 holes).
Geology: Mineralization is hosted by interbedded marine shale-siltstone-limestonevolcaniclastic andesite and overlying trachyandesite lava. The mineralization is developed
as quartz _+adularia vein-veinlets zones enveloped by chlorite-illite-pyrite haloes. Overprinted by kaolinite-pyrite-marcasite in the upper part of the system. The quartz veins/
veinlets are generally sulphide poor and include green to grey chert veinlets, dog tooth
quartz veins and veinlets/stockwork, and quartz cemented wall rock breccia zones, developed from multiple events of hydraulic fracturing.
Binabase-Bawone
Resource: Bawone: 4.5 Mt @ 1.37 g/t Au, 8 g/t Ag, 0.29% Cu.
History: Massive gossanous material and barite boulders observed at Binabase during
regional survey of Sangihe COW by Teweti in 1988. Followed up by soil sampling,

trenching, and IP, VLF and resistivity surveys. COW taken over by Ashton in 1989. Drilled
intermittently between 1989 and 1993 ( 1,397 m in 14 holes). Regional airborne magnetic /
radiometric survey in 1990 defined 3 km long NW trending structural corridor between
Binabase and Salurang. Followed up by ground magnetics and then IP/EM survey. Strong
chargeability anomaly, 400 m long, at Bawone. Drill tested during 1992-93 (341 m in 28
holes).
Geology: Binabase prospect represents stratiform silica-pyrite-minor Au replacement
body in andesitic tuff and tuff breccia cut by late-stage barite veining and underlain by
illite-barite-gypsum alteration with minor galena-sphalerite veining. Mineralization at
Bawone prospect located beneath cover of younger epiclastics; consisting of massive pyrite
(up to 80%) replacement of tuff, forming a structurally controlled, vertical body, 400 m
long, 80-100 m wide and 50 m deep, with late veins of chalcocite and barite containing Au.
A wak Mas
Resource: 14.9 Mt @ 1.75 g/t Au (indicated).
History: COW obtained by New Hope Consolidated Industries in 1987. Partially farmed
out to Battle Mountain Gold Co. in 1991. Follow-up of anomalies generated during a
regional stream sediment sampling program resulted in the discovery of outcropping, goldbearing quartz veins. Work completed by early 1993 include extensive soil sampling,
outcrop/float sampling and some 8,200 m of diamond drilling in 74 holes. Initial metallurgical testwork has shown + 90% recoveries by direct cyanide leaching of crushed material.
Geology: Gold mineralization is hosted by quartz-albite-carbonate-pyrite breccias, veins
and stockworks that have been emplaced along a series of shallow dipping shear zones
78
within Cretaceous metamorphic rocks or near the fault contact between these rocks and
MORB-type basaltic rocks, which were tectonically emplaced in the Miocene. Gold occurs
principally as inclusions within pyrite and quartz. Associated sulphide phases include
chalcopyrite, sphalerite, galena, bornite, chalcocite, tetrahedrite and covellite. Ag/Au ratios
<1.
Mangani
Resource: 0.9 Mt @ 6.5 g/t Au, 265 g/t Ag (mined out).
History: Discovered by the Dutch in 1907 and mined during 1902-1931 and 1940-1941.
Total production: 6.1 t Au and 247 t Ag. Investigated by CSR and subsequently Billiton
between 1985 and 1990. Work included surface and underground sampling and mapping,
and diamond drilling (4,187 m in 17 holes) in 4 prospects, Drilling beneath the old workings
and along strike produced disappointing results.
Geology: Quartz-rhodochrosite-rhodonite-adularia-Ag-Au veins are hosted by Tertiary
andesites on N-S tensional fractures intersecting a graben. There are 5 major veins systems
(average 400 m long and up to 20 m wide) which swell and pitch along strike and dip.
They are characterized by high Ag/Au ratios ( > 25), complex sulphide mineralogy of Fe,
Mn, Ag, Cu, Pb, Zn, As, Se and Sn, complex vein textures and vertical zonation. In the
main Mangani vein economic mineralization is interpreted to be controlled by a boiling
level that can be defined by the presence of rhodonite ( Kavalieris et al., 1987).
Bukit Tembang
Resource: Probable: 2.4 Mt @ 3.0 g/t Au, 45 g/t Ag; possible: 0.75 Mt @ 3.6 g/t Au.
Histor3': Dutch prospect. Initially examined by CRA in 1983/4. Detailed investigations
between 1986 and 1989 in joint venture with Battle Mountain included soil sampling on
50 50 m grid over 5 km z, deep augering (primarily aimed at mapping alteration patterns),
trenching ( 9,000 m) and drilling ( 11,758 m in 81 holes ). Expenditure: US$ 5 m. Purchased
by Setdco in 1991. Feasibility study carried out in 1992, including metallurgical test work
showing 90% recovery.
Geology: A large hydrothermal alteration system (2 km diameter) is developed in a
volcanic pile of trachyandesitic composition. Gold mineralization is associated with a system
of quartz veins and stockwork hosted by lavas, which show preferential fracturing compared
to interbedded tufts. Individual veins vary from 1 to 20m in width, are traceable along strike
over distances of up to 450 m and mineralized over a vertical extent of 100 m. They vary
from being highly pyritic to sulphide-deficient. The quartz is commonly chaicedonic with
rhythmic banding. Adularia is predominantly associated with an early phase of veining and
also occurs in adjacent wall rock and hydrothermal breccias. Regional propylitic alteration
is overprinted by illite, illite-smectite and kaolinite assemblages.
Lebong Tandai
Resource: Mined by the Dutch: 2.5 Mt @ 15.6 g/t Au, 175 g/t Ag. Proven and probable
reserves ( 1984): 290,000 at 12.2 g/t Au, 87 g/t Ag.
79
History: Probably worked by Hindu immigrants. Occurrence of gold first reported in

1789. Mined by the Dutch between 1910 and 1942 (39 t Au and 437 t Ag), and Mitsui
during Japanese occupation. After the war taken over by an Indonesian company and
between 1957 and 1985 worked by local miners. Between 1980 and 1983 old workings
partially reopened and dewatered by CSR. Investigations included mapping, sampling of
veins at 5 m intervals, and drilling. Opened in 1985. Up to 1992 operated by a Billiton;
currently by a domestic company. Production up to December 1992:4,6 t Au and 24 t Ag.
Geology: Au-Ag mineralization is hosted by a series of narrow (av. 1.5 m), steeply
dipping, E and NW trending breccia veins (up to 4.5 km long) localized along strike-slip
faults over a strike length of 15 km; vertical extent of mineralization is + 580 m. Pyrite,
illite, illite-smectite alteration is dominant in zones, 15-20 m wide, around the veins. The
breccias are cemented by quartz together with Au-Ag phases (electrum, Ag-sulphosalts,
Ag-tellurides), pyrite, base metal sulphides, adularia and chlorite. Sulphides occur either
as a single cockade band around the clasts or as aggregates disseminated throughout the
cement; their content is highly variable (1-100%). Average Ag/Au ratio of 14:1. Mineralizing fluids: 260-280C and < 3 wt.% eq. NaC1 (Jobson et al., 1994).
Lebong Donok
Resource: 2.9 Mt @ 14.3 g/t Au, 79 g/t Ag (mined out).
History: Artifacts, including ore grinding stones, and early literature indicate that inten-
sive gold mining took place on very rich quartz reefs at Lebong Donok during the 17th
century, and possibly much earlier. Pillars left in extensive, shallow stopes assayed tom
120 to 500 g/t Au. Mined by the Dutch from 1899 to exhaustion of reserves in 1940; total
production 41,5 t Au and 229 t Ag. Vein widths of up to 23 m were mined over a strike
length up to 450 m to a maximum depth of 440 m below the surface. Much effort was
devoted to locating additional ore (cut-off grade 6 g/t Au), including electrical geophysics.
Almost 1.9 km strike length was explored at depth by driving and cross cutting. A COW
area including the old mine was granted to CSR in 1985 (subsequently taken over by
Billiton). Exploration included surface and limited underground mapping and sampling,
and diamond drilling ( 1,388 m). A small resource of low grade material was outlined in
siliceous breccia zones adjacent to the main vein. The Donok mine area is now being
assessed by Aberfoyle Resource Ltd, as part of a larger exploration program in the COW
area, including airborne and ground geophysical surveys and drilling. Local mining, intense
at times, has continued since the Pacific War.
Geology: The deposit is located on a graben wall strand of the Sumatran Fault System,
on the edge of the Lebong Depression. Au-Ag mineralization is hosted by generally steeply
dipping veins (up to 200 m long) in a Tertiary sequence comprising carbonaceous shale
basement overlain by calc-alkaline volcanics. Mineralization is spatially related to a dacite
intrusion. Young volcanics cover the host sequence and conceal much of the altered and
mineralized zone. The main vein attains a maximum thickness of about 30 m, and is
mineralized over a vertical extent of 500 m. Veining "horsetails" to the south, and large
volumes of siliceous breccia are located here, and also between the main vein and subhorizontal splits (roof-reefs), and footwall veins (floor-reefs), as well as at depth. Predominant
vein minerals are finally banded chalcedony and quartz. Adularia averages 10-15%, and
80
calcite is locally massive; truscottite (a rare Ca-zeolite) is also present. Wallrock alteration
minerals include chlorite, epidote, sericite, illite, adularia, pyrite and truscottite. Gold occurs
as very fine electrum with some supergene gold dustings. Silver occurs mainly in Agselenides. Cu-selenides, As and Sb sulphosalts and Cu, Pb, Tn, Te sulphides are also present.
Total sulphide content < 2%.
Lebong Simpang
History: Two veins mined by the Dutch during 1921-26 and 1938-41. Only the upper
150 m were developed and supergene-enriched ore containing + 20 g/t A was mined. Grade
decreased to below 5 g/t with increasing depth. Total production 57 kg Au and 300 kg Ag.
Investigated by RGC in 1988-89, including drilling of 10 holes totalling 2,155 m to test the
vein systems for continuity and grade below resampled underground workings. Results
were negative. Lack of evidence for extensive hydrothermal boiling and multiphase silica
deposition further downgraded potential.
Geology: 5 major NE trending, steeply dipping sub-parallel vein systems up to 1.5 km
long and up to 3 m wide enveloped by pod-like quartz stockwork zones up to 40 m wide,
hosted by andesitic rocks. Propylitic alteration with up to 5% pyrite is pervasive; near vein
systems it is overprinted by illite, chlorite and quartz with 3-10% pyrite. Supergene argillic
zones up to 100 m wide envelop the main veins. Most of the gold found in quartz veins is
supergene, occurring as very fine disseminated specks coating quartz or as coarse wires or
leaves in vuggy, limonitic veinlets; minor chalcopyrite, sphalerite and galena present in
unoxidized zones.
Gunung Pongkor
Resource: Probable: 6 Mt @ 17 g/t Au, 162 g/t Ag.
History: Gold mineralization was not known to the Dutch and local people. During a
reconnaissance survey for base metals by ANTAM in 1981 indications for Au were found
and KPs were applied. Followed up in 1988 with a program of systematic stream sediment
sampling at a density of 2--4 samples per km 2 ( - 80# collected; - 200# analyzed for Au
and base metals) and float sampling; main veins yielded anomalies of 100-200 ppb; occasionally up to 900 ppb. Vein systems investigated by trenching and IP + ground magnetics.
Resistivity useful in outlining zones of silicification and wide quartz veins, and magnetics
in mapping alteration zones and structures. 40,000 m of diamond drilling. Feasibility study
in 1991; development started in 1992 and production (2 t Au/year) expected to commence
in 1994. Total exploration-feasibility costs: approx. US$ 3 M.
Geology: Mineralization occurs in a series of NW trending, steeply dipping to vertical
quartz veins within a 3km x 3kin zone of propylitic, siliceous and argillic alteration; hosted
by Miocene andesitic and basaltic volcanics intruded by dacite, andesite and basalt. Main
veins up to 1 km long and 2 to 10 m wide, with vertical extent > 300 m. Gangue minerals
consist of quartz, manganese oxides, adularia, carbonate, lesser illite-smectite and kaolin
with minor barite, chlorite and albite; ore minerals are electrum, acanthite, aguilarite and
argentite; 1% pyrite. Geochemically very low in Cu, Pb, Zn, As, Sb, Mo, Te, Ti, Ba and
Hg; Au particles <75 p,m. Mineralizing fluids dilute ( ~ 1% wt.% NaC1) and around
81
230C. Two K / A r dates of ~ 8.5 My on adularia suggests a Late Miocene age for the
mineralization (Basuki et al., 1994; Marcoux and Milrsi, 1994).
Ciawitali district
History: Limited Dutch workings present. District jointly investigated by BRGM and
Indonesia's Mineral Resource Department during 1988-1991. 110 km 2 covered by stream
sediment sampling (av. 4 samples per 1 km e) outlined area of 30 km 2 of 100 to 1500 ppb
Au; only few sites with Au in the pan. Followed by more detailed sampling, mapping, soil
sampling and trenching (2600 m); several poorly outcropping veins found; 4 veins and 1
stockwork zone tested by trenching and drilling (700 m; 8 holes). The new discoveries
attracted around 1000 illegal miners, who have been producing 150 kg Au per year.
Geology: Mineralization hosted by Upper Miocene-Pliocene andesites and rhyolites of
the Bayah Dome. 2 types of mineralization: ( 1) low-grade ( 1-3 g/t Au) quartz stockwork,
300 m in diameter with anomalous As, Hg and Sb, and (2) higher grade (5-15 g/t Au)
veins, 160 to 400 m long, 0.5 to 5 m thick, composed of milky quartz, with alternating
bands of manganese oxides and containing electrum ( 10-30 /zm) with traces of pyrite,
chalcopyrite and marcasite; cut by barren quartz veins; high Ag:Au ratios. Mineralizing
fluid temperatures predominantly 195-205C, and salinites < 3.9 wt.% eq. NaCI. K/Ar
date of 1.5 My on adularia (Felenc et al., 1991; Marcoux and Milrsi, 1994).
Cikondang
Resource: Proved-probable: 0.43 Mt @ 10.9 g/t Au, 25 g/t Ag, 3.1% Zn. Additional
0.3 Mt inferred reserves.
History: Dutch mine operated during 1937-40. Estimated production between 450 and
1,500 kg Au. Mining continued during Japanese occupation. Reinvestigated since 1989 by
Panen Sumbermas Agung in joint venture with ANTAM. Work to date includes drilling of
63 holes, dewatering of the old mine, underground development totalling 2,500 m and the
sinking of a decline shaft. A feasibility study based on an annual throughput of 100,000 t
was completed in 1992.
Geology: A large hydrothermal alteration system covering some 20 km 2 is developed in
a volcanic sedimentary pile peripheral to two andesite porphyries. Alteration comprises
sericite-chlorite with illite/smectite, and carbonate in the upper levels. The mineralization
is hosted in a structurally complex vein system. The main vein is sub-vertical and strikes
N-NE. To date 1.2 km strike extent has been confirmed; open along strike and at depth;
vertical extent > 250 m. The vein is brecciated, discontinuous and highly variable as regards
to width. Mineralogically two differing ore types predominate, a quartz-pyrite-arsenopyrite-hematite phase and a pyrite-sphalerite-galena phase. The former type shows 75 % Au
recovery by cyanidation, whereas recovery in the latter type is very erratic and may be as
low as 25%.
Cikotok district
History: Discovered by the Dutch in 1924. First gold poured in 1939, but operations
terminated in 1941 due to the Pacific War. From 1942 to 1945, the Japanese mined lead
82
from Cirotan. Post-war production resumed in 1957 and minor amounts of gold are still
being recovered. The mines are owned and operated by ANTAM. Total production from
the district is approx. 8 t Au and 22 t Ag, mainly from Cirotan, Cikotok and Lebak Sembada.
Geology: Numerous mineralized quarts veins occur within the central part of the Bayah
Dome which is composed of Oligocene to Quaternary rhyolitic to andesitic rocks. They are
up to 1,350 m long and several meters wide (locally up to 30 m), generally striking N-S
with steeps dips and vertical extents ranging between 100 and 300 m. The main veins are
Cirotan, Cipanglesseran, Lembak Sembada, Sopal, Cimari and Cikotok. With the exception
of Cikotok, they are characterized by abundant pyrite, galena, sphalerite and chalcopyrite:
polymetallic sulphide breccias are common at Cirotan and Sopal. The gangue is dominated
by quartz occurring with sericite, chlorite, adularia and apatite; cassiterite and stannite occur
in some veins. At Cirotan, Lembak Sembada and Cikotok rhodochrosite and rhodonite are
common at depth. Ag/Au ratios are generally > 20. Adularia samples from Cirotan and
Cipanglesseran yielded Late Plio-Pleistocene K / A t ages. At Cirotan there is a marked
increase in Pb-Zn with depth with a corresponding decrease in Ag/Au ratios from 64 in
the upper level to 7 at a vertical depth of 300 m. In this deposit 4 stages have been recognized:
(1) silicification, (2) immature breccias, (3) mature cockade breccias and polymetallic
sulphides and (4) bonanzas. Increases in fluid inclusion temperatures (235C to 255C)
and salinities (3.5 to 7.2 wt.% eq. NaCI) from stage 2 to 4 suggest increased magmatic
input; Au mineralization during stages 3 and 4 was accompanied by a progressive enrichment
in W, Sn and Bi (Marcoux and Mildsi, 1994; Mildsi et al., 1994).
Ciemas
Resource: 200,000 t @ 5 g/t Au, 20 g/t Ag.
History: The Dutch explored nearby areas in 1922-24. In the early 1980s, local mining
activity commenced in the prospect area, which is largely covered by plantations. The
plantation owner subsequently obtained KP title over the area, and between 1986 and 1988,
an Australian company, in joint venture with the KP holder, undertook 4,000 m of trenching
2, 100 m of RC drilling and 8,700 m of core drilling into several vein systems, outlining the
above mentioned resource in the Pasir Manggu vein system. Since early 1992, Terrex
Resources NL have been carrying out exploration (including 3,600 m of trenching and
3,500 m of RC drilling). The work has been aimed primarily at known resources in vein
systems. Recent efforts have been focused on untested broad alteration zones, which in
places have been heavily worked by local miners.
Geology: The area is underlain by Lower Miocene andesitic volcanic breccias with
interbedded tufts, lavas and sediments, intruded by Miocene quartz hornblende porphyry
(Ciemas Dacite). Two styles of alteration are present. ( 1 ) Widespread systems of irregular
banded chalcedony-quartz--carbonate veins, showing at least 3 phases of mineralization
and associated pyrite, arsenic and base metal sulphides. Gold is largely present in solid
solution in arsenopyrite and other sulphides; also present as electrum in quartz. The veins
are commonly surrounded by a replacement silica envelope within a broader zone of
argillization (illite-smectite). These alteration zones usually have sharp contacts, but the
surrounding zone of propylitization and carbonatization is not well defined. At Pasir
Manggu, the drilled resources occur in at least 3 sub-parallel veins, striking at about 45
83
and with various, but generally steep dips. (2) Alteration systems within and near bodies
of Ciemas Dacite, also displaying silicification-argillization-propylitization zoning, but
silica alteration zones in particular are more widespread and exhibit more variation, including jasperoid silica and development of multi-stage brecciation.
Pelangan
History: Stream sediment sampling by Newmont in 1987 identified a broad zone of
anomalous Au in SW Lombok. Follow-up in late 1989 discovered Au-bearing silicified
hydrothermal breccias and veins at Pelangan. Soil and rock sampling and mapping in 1990
identified 3 main zones. Conceptual targets included high-grade hydrothermal breccia pods
and lower grade (2.5 g/t) mineralization associated with silicification and veining. Results
of a trenching program of one of the zones suggested that the extent of the breccia-pods
and zones of veining/silicification was more restricted, and the Au content lower than
originally thought. This was confirmed by drill testing of the 3 zones ( 12 holes).
Geology: Gold mineralization at Pelangan is high level, high sulphidation epithermal in
character and hosted by strongly altered volcanics. Higher grades are commonly associated
with multi-episodic silicic alteration focused along high-angle fracture zones with NW and
E trends and characterized by evenly banded colloform silica-sulphide veins, sulphidic
hydrothermal breccias, and pervasive silica replacement. The mineralized silicic zones are
surrounded by extensive envelops of clay alteration, primarily smectite and kaolinite. Au is
associated with complex quartz-pyrite-enargite-tetrahedrite-telluride mineral suites; other
minerals noted within zones of strong Au-enrichment include alunite, sericite-barite and
selenide minerals. Evidence of strong acid leaching is relatively limited.
Soripesa
Resource: 0.3 Mt @3.7 g/t Au, 54 g/t Ag, 2% combined base metals.
History: Prospect identified during a regional exploration program carried out by CSR in
1985, which included satellite and airphoto interpretation, and BLEG and pan concentrate
sampling. Intermittent follow-up work between 1985 and 1987 (mapping, soil sampling
and trenching). 9 holes ( 1,327 m) drilled by Billiton; in 1988 followed by VLF-EM survey.
Geology: Mineralization occurs as steeply dipping quartz-sulphide veins, up to 500 m
long and 1 to 13 m wide within a 3.5 km long system. Average sulphide content 3%. Locally
up to 30%. Pervasive silicification in calcareous sediments adjacent to the veins. Relatively
high fluid inclusion temperatures and base metal content suggest that the prospect represent
the deeper part of an epithermal system.
Wetar deposits (Lerokis, Kali Kuning, Meron)
Resource: Lerokis: 2.9 Mt @ 3.3 g/t Au, 106 g/t Ag; Kali Kuning: 2.2 Mt @ 5.5 g/t
Au, 146 g/t Ag; Meron: 0.3 Mt @ 3.5 g/t Au, 110 g/t Ag.
History: Lerokis identified as a 10 ppb BLEG anomaly during a stream sediment sampling
program carried out by CSR in 1985. COW signed in 1986 (taken over by Billiton in 1988).
Follow-up in 86/87 including stream float mapping, and soil and rockchip sampling yielded
84
values of 1 to 13 g/t Au, with associated high Ag, Pb, As and Ba; EM (not conclusive), IP
(identified areas of pyrite alteration, strongest response over ore zones) and resistivity
surveys. Drill tested in 87/88 ( 18 DD and 513 RC holes, ~ 13,000 m). Decision to mine
in 89; I st production late 1990; annual production approx 2 t Au. Kali Kuning found in
1988 during detailed survey within 15 km radius around Lerokis; area of alteration with up
to 9 g/t Au from baritic material with Pb, As and Sb values along edge of a basinal structure
infilled with fresh volcanics; coincident with remote sensing anomaly. Drill testing in early
1991 intersected ore-grade mineralization beneath cover. Resource drilling (DD and RC)
during 1990/91. Estimated exploration-feasibility study expenditure: US$ 9-10 M.
Geology: Gold-silver mineralization occurs in stratiform barite sand units above moundlike zones of massive sulphides hosted by submarine dacitic and andesitic breccias overlain
by post-mineralization limestone of Pliocene age. The barite bodies, which are upto 37 m
thick and consist of barite grains in a matrix of iron-oxides, silica and clay, formed in small
basin-like depressions on the margins of felsic domes and commonly show evidence of
slumping. Claystone and ferruginous chert commonly overlie the baritic sequence. Most of
the gold occurs as electrum ( < 50/xm) associated with iimonite, jarosite and goethite; Ag
is predominantly associated with tetrahedrite and sulphosalts. The mineralization shows
isolated high Pb values ( > 1%) and enrichment in Hg (average 18 ppm), As and Sb. The
underlying sulphide zones, oval in plan and funnel-shaped on section, consist of pyritemarcasite with disseminated Cu minerals including chalcocite, bornite, chalcopyrite and
enargite. The sulphide units are commonly brecciated with cobble-size pyrite clasts in a
pyritic matrix. At depth they grade into pyritic stockwork. Rock alteration extends over an
area of about 25 km 2 around Lerokis and Kali Kuning and has a vertical extent of at least
250 m. Two main alteration events have been recognized: 1 ) illite~liaspore-chloriteadularia_+ quartz + ? alunite ( > 220C ), and 2) quartz, opal, cristobalite, smectite, kaolinite, zeolites, carbonate, jarosite and alunite ( < 200C). The former event took place around
4.7 M ago (Sewell and Wheatley, 1994a,b).
Wanagon
Histoo,: Located 3 km SE of Grasberg, and 2.5 km NW of Big Gossan. The prospect
was sampled by Freeport geologists in 1973. The resulting favourable Au-Ag results
prompted further exploration, including mapping and sampling in 1975-76. A drilling
program consisting of 14 DD holes (3663 m) was conducted during 1980-82. Au-Pb-Zn
mineralization intersected in several holes. In March 1993, a second drilling program
commenced to test mineralization at depth.
Geology: Like Big Gossan, mineralization is located along the contact between the
Kembelangan and Faumai Formations, with complications from the Wanagon-Mill Fault.
Several dioritic dykes and sills of varying age and composition cut the sedimentary rocks.
K/Ar dates place the intrusions in the 3-4 Ma range. Two mineralization styles have been
identified: ( i ) carbonate replacement A u - P b - Z n - A g + Cu mineralization replacing matrix
and clasts in shears and faults in the Faumai Formation; it also occurs in a unit mapped as
the "Dizzy Breccia", and (2) Cu-Au skaru within the Kembelangan limestone unit.
85
References
Adam, J.W.H., 1960. On the geology of the primary tin-ore deposits in the sedimentary formation of Billiton.
Geol. Mijnb., 39: 405~-26.
Agoes, E., 1988. Uranium exploration in Indonesia; An overview. In: Uranium Deposits in Asia and the Pacific:
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25 Years of Mineral Exploration and Discovery in Indonesia

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ELSEVIER

Journal of Geochemical Exploration 50 (1994) 13-90

25 Years of mineral exploration and discovery in

( Received 4 September 1992; accepted after revision 26 October 1993)

1994 Elsevier Science B.V. All rights reserved

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

1710 -commencement of production

Fig. 1. Significant mineral production centres in Indonesia pre-1949.

Fig. 2. Map showing geographic locations mentioned in the text.

T.M. van Leeu wen / Journal o f Geochemical Exploration 50 ( 1994 ) 13-90

2. Phase 1: following in the footsteps of the Dutch

3ONTRACT OF WORK FOR:

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

Mined by open pit methods from 1972

Gunung Bijih Timur

Block cave operations commenced

Production will start in 1994 by induced

Open stope production started in 1988.

Has not preceeded beyond the early

Open pit mining began in December

In exploration stage (drilling and

Data source: P.T. Freeport Indonesia.

T.M. van Leeuwen /Journal of Geochemical Exploration 50 (1994) 13-90

Freeport geologists investigated the occurrence in the mid-1970s. Outcrop samples

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

180 Mt @ 1.67% Ni (ox and sill

Dutch prospect. Exploration by INCO

129 Mt @ 1.4% Ni (ox and sill,

Old Dutch mine; operated by ANTAM

18 Mt @ 2.61% Ni (sill (1992).

20 Mt @ 2.60% Ni (sill and

Moluccas deposits explored by INDECO

88 Mt @ 1.2% Ni Cox) (1977).

104 Mt @ 1.41% Ni Cox and sill

53 Mt @ 1.43% Ni Cox) (1972).

262 Mt @ 1.51% Ni Cox and sill

All 3 deposits investigated by the Dutch.

Kukusan and S. Duwa

126 Mt @ 1.2% Ni (ox and sill

426 Mt @ 0.4% Ni (ox and sill

Explored by ANTAM during 1972-1974.

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13 90

T.M. van Leeuwen /Journal of Geochemical Exploration 50 (1994) 13-90

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

3. Phase 2: the porphyry copper search

UNDER CONTRACT OF WORK

T.M. van Leeuwen /Journal of Geochemical Exploration 50 (1994) 13-90

consortium (Overseas Mineral Resources Development). Seven second generation COWs

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

4. Phase 3: the coal revival

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

To promote development of the Kalimantan coal resources, the Government invited a

T.M. van Leeuwen / Journal of Geochemical Exploration 50 (1994) 13-90

P.T. Arutmin Indonesia

P.T. Chuang Hua Overseas Mining Dev., 1985

P.T. Utah Indonesia, 1981 (100% BHP Minerals)

P.T. Arutmin Indonesia, 1981

P.T. Adaro, 1982 (50% New Hope Group; 20% Enadimsa,

P.T. Berau Coal, 1983