Newcrest, Antam expand long-standing relationship

By Ruli Setiawan

Newcrest Mining Limited and PT Antam Tbk announced that both parties have agreed to expand their long-standing, 18-year partnership through Antam acquiring from Newcrest a further 7.5% interest in the Gosowong mine in Indonesia.

Under the agreement, Antam will acquire 7.5% in gold mine PT Nusa Halmahera Minerals (PTNHM)in Gosowong, from Newcrest.

Newcrest will receive US$160m, consisting of US$130m cash on completion and a further US$30m subject to a further 1 million ounces of additional gold resource being defined by December 2017.

With the agreement, Newcrest will hold 75% of PTNHM and Antam will hold the other 25% interest.

Alwinsyah Lubis, President Director of Antam said: ?Over our long history, Antam has developed a strong portfolio of assets including gold, silver, nickel, bauxite and coal mines and refining facilities. The Gosowong mine is an outstanding mine and we see that taking a greater stake in the mine will further enhance our portfolio."

Newcrest?s Executive General Manager, Indonesia and Papua New Guinea, Brett Fletcher said, "Antam?s acquisition of a further 7.5% of Gosowong allows us to deepen our relationship with Antam and to realise a return on our investment in the mine at fair market value."

Editing by Adianto P. Simamora