MLC Group to start copper/gold project construction next year

Local firm PT Merukh Lembata Copper (MLC) is set to begin the construction of its copper and gold mine in Lembata regency, East Nusa Tenggara next year, with an investment of about US$1.5 billion, Investor Daily reported on Friday.

MLC which is owned by Indonesian businessman Jusuf Merukh is currently completing a general exploration in the Lembata copper and gold mine which is estimated to hold reserves of about 50 trillion ounces of copper and 700 million tons of other minerals including gold.

Jusuf said in Jakarta on Thursday that the company was still waiting for a permit from the local government to begin mining exploitation. ?With the declining trend in metal prices in the world market, we would speed up the process of the mine construction so that the mine would be able to begin production within four years from now,? he added.

According to him, MLC will cooperate with strategic partners to develop the mine including three German companies; Kupfer-Produkte GmbH, Norddeutsche Affinerie AG and IKB Deutsche Industriebank AG, as well as United Metal Energy of the United Kingdom, Agape Metal Energy of Singapore and Asian Mining Management of Hong Kong.

?MCL will remain as a majority shareholder in the mining project which will likely absorb total investment of about $17 billion,? he added.

MCL is expected to produce 350,000 tons of copper a year. (*)