Indonesian state-owned miner PT Aneka Tambang Tbk said on Friday it plans to spend $40 million to develop the newly-acquired Cibaliung gold project in West Java.
Antam signed a Heads of Agreement with ANZ Bank and Australian firm Arc Exploration Limited earlier this year for the transfer of ownership of PT Cibaliung Sumber Daya, which operates Cibaliung gold project in Banten province.
Antam has completed the ownership transfer of PT Cibaliung and spent $8 million on the acquisition, Bimo Satryo, Antam's corporate secretary said.
'We plan to spend $40 million to develop the project until it starts production,' Satryo said in a text message.
PT Cibaliung was previously 95-percent owned by Arc while Antam owned the remaining 5 percent.
Antam expects Cibaliung gold mine to start production in the second half of 2010. The gold mine is expected to produce 500 kilograms of gold next year and will have a full production of 2,000 kg at the start of 2011.
Antam has said it expects gold output to reach 3.8-4 tonnes next year, increasing from 2.8 tonnes in 2009 with the acquisition of Cibaliung gold project which has a mine life of six years.
Antam, which is 65 percent-owned by the Indonesian government, is involved in the exploration and production of nickel ore, bauxite and iron sands, smelting of ferro-nickel, and exploration, production and refining of gold and silver.
Source: LSE
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