The West

Straits Resources has resumed mining in part of its Mt Muro gold project in Indonesia after successful negotiations with local authorities, workers and the community.

The company announced today mining had recommenced in the western end of the pit but operations were still suspended in the eastern end of the pit because of a disagreement over an area of local cultural significance.

Straits announced last Thursday it had been forced to suspend mining at Mt Muro because of a directive from a local authority.

Managing director Andre Labuschagne said discussions with stakeholders over the past few days had been productive with significant progress made.

"The remaining issue relates to the placement of a boundary line between an area of local cultural significance and the eastern end of the Serujan Pit," he said.

"We are confident that with current support from all stakeholders, mining in the eastern end of the pit will recommence shortly."

Straits shares were 0.2 cents, or 2.5 per cent, firmer to 8.2 cents.

The West Australian

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