Thursday, 3rd July 2008 (300 views)

PT Aneka Tambang is to buy a ten per cent stake in Oxiana's project in Indonesia.

The $66.5 million (£33.44 million) will be used partially to add gold production to the Martabe project in North Sumatra.

PT Aneka Tambang, or Antam as it is also known, has the option to acquire a further ten per cent in the project for another $66.5 million.

In the future an additional five per cent may be bought by Antam for an amount dependent on the market value of the project at the time.

Production at the mine is due to start in late 2009 with an estimated production rate of 200,000 ounces of gold per year. This is based on an estimated resource of six million ounces.

Mining at the Martabe project is predicted to have a mine life of nine years.

It will cost around $310 million to construct the gold operation.

"Antam's expertise and place in the Indonesian mining sector makes it an excellent strategic partner for Oxiana as it aims to expand its business in Indonesia," Oxiana said.

Oxiana also has operations in Laos and Australia.

 

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