Antam eyeing stake at Oxiana?s N. Sumatra gold project

IDX-listed state miner PT. Aneka Tambang Tbk said on Tuesday it was initiating talks with Australian mining firm Oxiana Limited to buy stake at the latter?s Martabe gold project in North Sumatra.

Director Dharma Ambiar told reporters the company had expressed its intention to Oxiana, adding that the Antam wanted majority position in the mine.

Oxiana, however, said it was currently negotiating to sell only 5 percent stake in the project. Oxiana?s External Relations Manager Bruce Loveday said that the Antam is one of the parties the company was considering as taker.

Oxiana will spend US$310 million to develop Martabe gold and construction permit is expected to be issued this month.

The Martabe project is currently based on the single Purnama deposit which has an initially identified mine life of 9 years with annual production of 200,000 oz of gold and 2,000,000oz of silver. Two other adjacent deposits, Baskan and Pelangi, plus primary gold potential at depth and other un-explored areas of Oxiana?s tenement represent significant upside potential. (godang)