PUBLICLY listed PT J Resources Asia Pacific Tbk has secured US$275 million in loans from a syndication of local and foreign banks with which it intends to boost mining operations in Indonesia and Malaysia. The company aims to almost double annual gold production from 103,000 ounces to about 200,000 in 2014.

J Resources has a suite of operating, development and exploration gold projects in Indonesia and Malaysia.
J Resources has a suite of operating, development and exploration gold projectsin Indonesia and Malaysia.

The loans consist of US$110 million from Indonesia Eximbank, $50 million from Qatar National Bank SAQ, $25 million from PT Bank QNB Kesawan, $65 million from PT Bank Permata and $25 million from PT Bank ICBC Indonesia. About 60% of the loan funds are expected to be used to support the company in developing existing sites in Indonesia and boosting production in Indonesia and Malaysia. The other 40% will be used to pay off previous debts from PT Bank CIMB Niaga Tbk and Indonesia Eximbank.

J Resources’ company director William Surnata says part of the loan funds would be used to support mining activities at the Penjom Gold Pine in Pahang, Malaysia, and develop new sites and facilities in Seruyung, East Kalimantan and in Bakan, North Sulawesi.

Bakan and Seruyung are expected to annually produce about 55,000 to 60,000 ounces of gold. Production in Bakan began in November, with an expected mining period of six years and gross resources of 265,000 ounces. Seruyung was expected to commence operations in Late November and produce about 165,000 ounces over three years.

The company expected to increase output from Penjom to 57,000 ounces in 2013, up from around 50,000 in 2012, and to extend the life of the mine, which is expected to close in 2017.

It aims to boost annual Penjom output to 66,000 ounces with the new investment.

The company acquired Penjom through intermediary PT J Resources Nusantara along with several assets in Indonesia from UK mining company Avocet Mining in 2011. The assets were placed directly under J Resources’ control early in 2012.

In the latter years of operation, Avocet did not invest significantly in Penjom, believing it would soon be exhausted. With the new mines, J Resources expected to have four active mines by the end of 2013, including North Lanut in North Sulawesi that can annually produce up to 40,000 ounces.

William Surnata says the company is also hoping to gain mining permits for two other new sites, which are expected to start producing in 2015. The new mines will be Daup and Pani, both in North Sulawesi. Daup has estimated reserves of 1.18 million ounces with Pani containing about 1.3 million ounces.

J Resources has a suite of operating, development and exploration gold projects in Indonesia and Malaysia.

Resource Center Whitepapers, Videos, Case Studies

Conferences & Events

No events