Gulf Mines finalizing talks over manganese, iron ore marketing rights

By Ruli Setiawan

ASX-listed Gulf Mines Limited said it was finalizing the negotiations to acquire the exclusive global marketing rights for PT Asia Mangan Grup?s (AMG) high grade manganese operations and for PT Asia Besi Grup?s (ABG) future high grade iron ore project, both situated in Indonesia.

AMG and ABG are 90 percent subsidiaries of Asia Minerals Corporation Limited (AMC). Gulf Mines said in June of this year that it was also planning to acquire shares in AMC.

The company said in a statement obtained Friday that at full production of 250,000 tons of manganese ore and 125,000 tons of manganese alloy the agreement will generate US$7 million in fees annually and at full production of 1,500,000 tons of iron ore will generate an additional $4.5 million in fees annually.

The transaction is subject to the approval of ASX Limited and all other appropriate consents and approvals.

Gulfs Chairman, Peter Remta, commented ?These are outstanding transactions as they will generate consistent annual income for our company over the life of the mines?.

Editing by Reiner Simanjuntak