Bara Kutai Energi to invest $750 million in nickel & gold projects
Monday, August 22 2011 - 02:48 AM WIB
Edi said that through its subsidiary PT Bumanik, the company would invest up to $600 million to develop a 5000-hectare nickel mine and its smelting plant in Morowali, Central Sulawesi. ?We have a 80 percent stake in PT Bumanik which will operate the nickel mine,? he said, adding that
PT Bumanik was currently conducting a feasibility study in the Morowali nickel mine. He hoped that the feasibility would be able to be completed at the end of 2011 so that the project could be commenced in 2012.
?Investment of up to $600 million will cover both upstream and downstream activities. It means that the money will be used for exploration and the construction of the smelting plant,? he said, adding that the company had hired an Australian consultant Mark Stimpson for the project. The smelter would have a capacity of 30,000 tons a year.
He said that the remaining funds would be used to finance the construction of the company?s four gold mines. The Lanut and Bakan gold mines in North Sulawesi and Doup mine in Central Sulawesi will receive $25 million, each. Meanwhile, the Pani gold mine in Gorontalo will receive $75 million.
?A portion of the funds for investment will come from internal funding sources. One of the option is through an initial public offering (IPO), but for this we still need a further study? he said, adding that there was a possibility that the company would use a new firm under the name of J-Resources to conduct the IPO.
PT BKE recently acquired gold mine assets worth $200 million from Avocet Mining Plc through its subsidiary JPartners LP. The assets include Avocet?s 100 percent stake in Penjom gold mine in Pahang, Malaysia, and a 80% stake in PT Avocet Bolaang Mongondow (ABM). (*)