Antam in acquisition talks with Arc, Oropa

IDX-listed state miner PT.Aneka Tambang Tbk is in talks to acquire majority interest in two gold projects in Banten and North Sumatra, CEO Alwinsyah Loebis said.

Loebis said the company is currently in talks with Australian firm Arc Exploration Limited to increase its share in Cibaliung gold project in Banten, which is currently under construction. Antam currently has a 5 percent stake in the project, which is being delayed following series of construction failures, which also caused cost to swell.

Production from the mine is expected to reach 260,000 ounces per year.

Antam is also in talks with another Australian firm Oropa Limited to increase its shares at Pungkut gold project in North Sumatra from 25 percent currently. Oropa has 75 percent interest in the project through its unit PT.Sorikmas Mining.

The Pungkut gold project is currently at exploration stage.

Loebis said Antam is keen to add its gold portfolio as its current gold mine in Pongkor, West Java, would cease operations in 2013 due to reserves depletion.(bernard)