Pamapersada to complete Sumbawa gold exploration in Q3
Tuesday, April 26 2016 - 05:11 AM WIB
PT Pamapersada Nusantara, a subsidiary of IDX-listed heavy equipment and mining company PT United Tractors Tbk, aims to complete exploration activity at its gold mine in Sumbawa, West Nusa Tenggara Province, in the third quarter (Q3) of this year.
President Director of Pamapersada Frans Kesuma said on Monday that once completed, it would be followed with design of the mine and necessary infrastructure facilities just road and port.
He said that production at the gold mine is targeted to start at the end of next year or early 2018. ?Production target will be determined once the reserves have been known,? Frans said.
Pamapersada Nusantara acquired in February of last year a 75.5 percent stake in PT Sumbawa Jutaraya, which owns the gold mine, for US$2.57 million. Prior to the acquisition, Sumbawa is majority owned by United Gold Resources Pte Ltd, and 5 percent owned by PT Sumba Mas Persada.
United Tractors (UT) has said that the acquisition of the gold mining firm forms part of diversification strategy amid the lingering coal industry downturn. UT also operates coal mines, aside from providing mining services, and being the sole distributor of Komatsu heavy equipment in the country.
Editing by Reiner Simanjuntak