G Resources plans to bring Martabe to production on schedule
Tuesday, March 23 2010 - 03:10 AM WIB
?Inevitably, there are always obstacles and challenges in the process of construction and development of any mining project, and the Martabe Project is likely to be no exception. We have a committed management team whose members are dedicated to the completion of the Martabe Project, which is targeted to have first gold production in 2011,? the Company said in 2009/2010 Interim Announcement published last week.
The Company said that in December 2009, the permanent mine access road construction contract was competitively tendered and awarded to Indonesian contractor PT Duta Graha Indah Tbk. The contractor has already mobilized equipment, and works are well advanced.
Antrak Logistics Pty Limited, a member of the Bollore Group, was awarded the contract provision of transport and logistics for materials and equipment delivery to the Martabe Project site, and a number of key equipment items were also ordered in late 2009.
In December 2009, the Company signed a Sale & Purchase Agreement at a competitive rate with state electricity firm PT PLN (Persero) to supply power to the Martabe Mine. Under the agreement, power will be supplied for nine years. Consultants have evaluated the stability and the security of the grid in North Sumatra and have established a high level of confidence in the reliability and quality of the power supply, the Company said.
The Martabe project is expected to produce approximately 250,000 ounces of gold and 3,000,000 ounces of silver each year in the early years of the mine life.
Meanwhile, the Company also said that in order to achieve target of 1 million ounces per annum gold production in 5 years, it is constantly looking for potential acquisition opportunities especially in Indonesia. (alex)