Agis set to acquire iron ore mine

Publicly listed electronics appliance distributor PT Agis Tbk will further expand the company?s mining operations by acquiring an iron ore mine in Kalimantan next year, Investor Daily reported on Friday.

The company?s Director Steven Kesuma said that the iron ores from the Kalimantan mine would be used to feed the company?s steel plant which would be built on a 10-hectare plot in Semarang, Central Java.

The plant which will have a capacity of 300,000 tons a year is expected to begin operation within the next two and three years.

Steven said that the company?s newly acquired gold mine in West Sumatra is expected to begin production in the second semester, next year. The company spent about US$60 million to acquire the gold mine.

The gold mine is operated by PT Agis Resources, a joint venture between Agis and Chinese company Fujian Xinjifu Enterprise, with share ownership of 51 percent and 49 percent, respectively.

?We will produce alluvial gold ores with capacity of 6,000 tons a year, and are now still conducting a research on primary gold deposits,? he added.

Agis is hoping to sign another sale and purchase agreement to acquire another gold mine covering an area of 2,500 hectares located near the existing gold mine. The company will allocate about $5 million to develop the gold mine. (*)