Antam may form consortium if wins right to acquire N. Sumatra gold project

State nickel and gold miner PT. Aneka Tambang Tbk said on Thursday it would team up with foreign mining firms if it were given right to acquire Newmont Mining Corp?s Martabe gold project in North Sumatra.

President Dedi`Aditya Sumanegara said that forming a consortium would ease the company?s financial risk for the project.

Antam is one of the five bidders that are competing to buy Newmont?s 90 percent stake in Martabe. Other four companies are from UK, Australia, Malaysia and a company controlled by local mining magnate Jusuf Merukh.

Government had earlier signal its preference to have national company to buy the project.

Pre-feasibility study on the gold project conducted by previous owner Normandy Mining in 2002 revealed that high returns from the project could be achieved from a heap or dump leach operation for a low entry capital of approximately US$30 million and operating cost of approximately US$105/oz, with an indicative average annual production of 150,000ozs. (godang)