Sold, down the river (July 14, 2005)

The Kelian gold mill, bought from Rio Tinto (RTP-N) by Guinor Gold (GNR-T), has started its journey from interior Kalimantan to Guinor’s Lero gold mine in Guinea, West Africa.

Guinor, which bought the mill for US$15 million, has received regulatory clearances for the mill to leave Indonesia, and the first of about 12 barge loads has been shipped down-river to Samarinda, on the east coast of Kalimantan. There it will await shipment to Malaysia, where barge loads will be transferred to ocean ships bound for Guinea.

Guinor estimated that each cargo ship can carry about four barge loads, and that the ships should arrive in Conakry, Guinea in the last quarter of the year.

Guinor expects to have the mill assembled at Lero for commissioning in 2006.