ANZ Investment Bank to provide project finance for Banten gold project

Australian mining firm Austindo Resources Corp. Ltd. announced on Monday that it and joint venture partner PT. Aneka Tambang (Antam) have appointed ANZ Investment Bank to provide project finance for the development of Cibaliung gold project in Banten province, subject to bank's credit committee approval.

The project is operated through joint venture company-PT.Cibaliung Sumber Daya; in which Austindo has 83.76 percent shares and the balance is owned by Antam.

Austindo said the project financing, together with equity funds it would raise would enable the commencement of construction in the first half of 2005 with first gold production in 2006. "Commencement of the construction remains subject to obtaining project development permits and environmental approvals, the process of which is well advanced," said the company.

The Cibaliung project will be able to process 220,000 tons of ore per annum with production rate of 70,000 ounce. Mine life is expected at 6 years, with initial investment of US$34 million. Mining will be by conventional underground with cut and fill stoping with decline access, with average life of mine cash operating cost at less than US$200 per ounce. (alex)