Bumi to spend $500m to bring Sulawesi mines onstream in 2011
Friday, October 5 2007 - 02:02 AM WIB
Senior VP Investors Relations Dileep Srivastava told reporters on Thursday that extensive drilling programme will be conducted in Citra Palu Mineral’s gold concession in Central Sulawesi and Gorontalo Minerals’ copper and gold project in Gorontalo province in 2008 to get JORC compliant reserves estimate by the end of 2008.
Bumi has secured US$150 million funds from convertible bonds it recently issued, part of which will be used to finance the exploration works.
Dileep said that after JORC compliant reserves would be obtained, the company will move to feasibility study (FS) and would go on to construction if the FS will recommend the projects to be executed.
“Based on our present estimate, the projects would need $500 million to enter commercial stage and hopefully, production could be achieved in 2011,” he said. He, however, decline to reveal estimate production for both mines.
Bumi acquired Citra Palu from Newcrest Mining Limited and 80 percent shares Gorontalo Minerals from BHP Billiton in 2005. According to a document released by Newcrest in 2001, the Citra Palu mine could produce gold at 150,000 ounces per year for at least 10 years. (alex)