Antam to buy gold from IUP miners
Tuesday, October 4 2016 - 02:45 AM WIB
IDX-listed mining firm PT Aneka Tambang Tbk (Antam) said it is currently in talks with several gold miners holding IUP mining business permits in various regions in the country to buy gold from them.
The move is part of efforts to ensure sustainable gold supply for the company as it anticipates growing demand at home and abroad.
?We?re opening a number of options for our gold business. The important thing is that we can buy gold from them (IUP miners),? Antam President Director Tedy Badrujaman told Petromindo.com on Monday.
He said that the IUP gold miners which have been in talks with the company are scattered in North Sumatra, Banten, and East Java. He added that the company opens possibility of providing exploration expertise and human resources in the planned cooperation with the IUP miners. Tedy expects deals can be made before the end of this year.
This portal reported previously that Antam was also opening the possibility of getting supply of cheap gold nuggets from small traditional miners as long as the mines are legal and meet proper requirements. ?For Antam, it is not taboo to buy gold from traditional miners as long as they?re legal,? Tedy told Petromindo.com.
Traditional gold miners have often been associated with illegal mining activities as they operate in areas without permit and apply materials such as mercury to process ores into nuggets, raising health and environmental concerns.
Antam operates gold mines in Pongkor and Cibaliung, West Java Province. The company also buys gold from other parties. The company has set gold production target of 2.45 tons this year, up from 2.21 tons last year, as price of the commodity has been on a rising trend amid lingering global uncertainty. Sales this year is targeted to reach 11.5 tons, while in the first of eight months it has reached 7.5 tons.
Antam?s Precious Metal Processing and Refinery Business Unit (UBPP LM) is the sole gold processing and refinery unit in Indonesia with LBMA certification. The certification ensures the 99.99 percent purity of Antam?s gold with an international standard, the company has said.
Editing by Reiner Simanjuntak