An 18-year partnership between Newcrest Mining and PT Antam will be expanded with Antam acquiring a further 7.5% interest in the Gosowong mine in Indonesia, bringing its total stake to 25%.
PT Nusa Halmahera Minerals holds the contract of work for the world-class epithermal gold mine where 6 million ounces of gold has been discovered to date. Newcrest and Antam plan to work together to maximize the value of the mine.
Newcrest’s executive general manager for Indonesia and Papua New Guinea, Brett Fletcher, says, “Antam’s acquisition of a further 7.5% of Gosowong allows us to deepen our relationship and to realize a return on our investment in the mine at fair market value.
“We recognize Antam as an established and reputable Indonesian state-owned mining company with which we have worked closely in partnership for 18 years. We will continue to work together to maximize the returns from the mine to our respective shareholders and other stakeholders.”
Newcrest will receive US$160 million for the share, consisting of US$130 million cash on completion and a further US$30 million subject to a further one million ounces of additional gold resource being defined by December 2017.
The transaction is yet to be approved by the Ministry for Energy & Mineral Resources and the Indonesia Investment Co-Ordinating Board (BKPM).
Antam’s president Alwinsyah Lubis says, “Over our long history we have developed a strong portfolio of assets including gold, silver, nickel, bauxite and coal mines and refining facilities. The Gosowong mine is an outstanding mine and we see that taking a greater stake in the mine will further enhance our portfolio. We have a longstanding and effective working relationship with Newcrest and we look forward to that relationship continuing into the future.”
Prospectivity for future discoveries at the site remains high and significant ongoing investment in exploration is planned to continue. Antam is one of Indonesia’s leading mining companies with more than 44 years of mining experience and abundant reserves of high quality minerals.