J RESOURCES Asia Pacific intends to develop a gold processing plant at Gunung Pani in northern Sulawesi. To enable and support the development, the company recently signed an MoU with a village cooperative.
PT Puncak Emas Gorontalo director Edi Permadi and KUD Dharma Tani Marisa’s leader Abdul Kadir Akib at the signing of the MoU.
J Resources plans to spend as much as Rp2 trillion (US$163 million) building the new plant on a 7000 hectare plot of land owned by subsidiary PT Puncak Emas Gorontalo. It is targeting annual output of 100,000 ounces of precious metals by 2016, according to J Resources’ corporate secretary Edi Permadi.
J Resources, formerly PT Pelita Sejahtera Abadi, is a Jakarta-based holding company with subsidiaries mostly in the gold mining industry. It has a number of mines in Kalimantan and Sulawesi.
Edi Permadi told Investor Daily that the company is doing some additional drilling to prove the resources for the benefit of the joint venture with village cooperative Dharma Tani Marisa. “If it’s approved by the board, we will proceed with the joint venture with the village cooperative as the major shareholder.”
He said that the cooperative’s land hosted almost 1 million troy ounces of precious metals and the total was expected to reach 2 million ounces when combined with the land owned by Puncak Emas. If the board gives its approval, the joint venture will continue its feasibility studies before starting construction.
The MoU was signed in late December by Puncak Emas Gorontalo director Edi Permadi and the leader of Koperasi Unit Desa (KUD) Dharma Tani Marisa Province of Gorontalo, Abdul Kadir Akib. The purpose of the MoU is to integrate the Contract of Work of PT Gorontalo Sejahtera Mining (GSM) at Gunung Pani with the Mining Business Permit (Izin Usaha Pertambangan) of KUD Dharma Tani Marisa.
Edi Permadi says this cooperation includes exploration activities, feasibility study, construction, production, logistics, marketing, processing and purifying the minerals within the Mining Business Permit.
J Resources, through its unit J Resources Nusantara, secured a $275 million five-year bank loan in November last year, which will be used to refinance its debt and expand the company. The lenders include Indonesia Eximbank, Qatar National Bank SAQ, Bank QNB Kesawan, Bank Permata and Bank ICBC Indonesia. The loan will be used to pay off an outstanding loan to Bank CIMB Niaga and Indonesia Eximbank.
In addition, the loan will be used to develop gold production in Bakan in northern Sulawesi and in Seruyung, in northern Kalimantan, as well as to increase the capacity of a mine at Penjom in the Malaysian state of Pahang.