Indosmelt plans an initial public offering by the end of 2015 to raise about $500 million to build a gold refinery. The refinery, with annual production capacity of 20 tonnes, will be part of a $1.5 billion copper and gold complex in South Sulawesi.

President director Natsir Mansyur says the company intends to sell a stake of up to 49% to the public and Kresna Sekuritas will be the underwriter.

The company plans to start construction of a copper smelter as part of the complex in April or May this year. Indosmelt, which is owned by local investors, says it plans for the smelter to have annual capacity of up to 120,000 tonnes of copper cathode; 300,000 tonnes of slag, which is one of the raw materials in cement making; and 200,000 tonnes of anode slag, a key ingredient in the gold refining process.

Indosmelt has been aiming to secure a steady supply of concentrates from the top copper and gold miners in Indonesia, Freeport Indonesia and Newmont Nusa Tenggara (NNT), for the smelter and refinery. It recently signed a conditional sales and purchase agreement with NNT to supply copper concentrate for the smelter.

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