Archipelago gets OK to develop N. Sulawesi gold project
Monday, March 17 2008 - 09:59 AM WIB
?On 13th March 2008, the Director General of Mineral, Coal and Geothermal on behalf of the Minister of Energy & Mineral Resources in his capacity as representative of the Government of Indonesia, issued decrees approving development of the Toka Tindung gold project,? it said.
According to the company, these decrees accept the operating companies revised Environmental Management Plans (AMDALs) and entitlement to re-commence construction activities under the construction phase of the project.
The Director General has requested that construction activities be recommenced as soon as possible to ensure an early start to production for the benefit of all stakeholders, it said.
?The company has immediately implemented plans to recommence construction activities and finalise its loan financing facility. The Lender?s Engineer visited site at the beginning of March to commence the loan facility pre-drawdown review including satisfaction that renewable operating permits and licences will be forthcoming during the life of the project,? it said.
?The company is seeking to increase its loan facility to meet additional costs arising from the delay to avoid or minimise the need for any additional equity raising. Hedging requirements are also being reviewed to ensure that forward sales are minimized.?
The Toka Tindung Project has a defined resource of 1.75m oz gold equivalent of which 0.9m oz will initially be mineable by means of five open pits.
The mine is targeted to produce 160,000 ounces of gold per year.
Archipelago has 85 percent share in the Toka Tindung Gold project. (denny)