Sago Prima maintains production level despite solid overseas demand
Saturday, May 20 2017 - 05:41 AM WIB
Gold mining firm PT Sago Prima Pratama (SPP), a subsidiary of IDX-listed PT J Resources Asia Pasifik Tbk, said it will maintain production at current level despite strong demand from Singapore, its only market.
SPP, which operates a gold mine concession in Seruyung, Sebuku, Nunukan Regency, North Kalimantan Province, will produce about 80,000 ounces this year.
?We export 100 percent (of output) to Singapore. Whatever our production volume is, it can be absorbed by Singapore,? said General Manager of SPP, Arrisandi (one name) to Petromindo.com on Friday.
He said that the company has no plans to increase production this year despite the solid demand in Singapore as SPP is more focused on sustainability of production given the limited reserves. He pointed out that the mine life is estimated to last only until 2022. ?Production this year is still maintained at 80,000 ounces ? With the limited reserves, we?re maintaining production at current level,? he said.
SPP?s gold concession, totaling 3,560 hectares, has gold reserves of 500,000 ounces, with average gold content of 2.8 grams per ton of ore.
Before exporting to Singapore, SPP sends its gold ores to be processed at facility owned by IDX-listed mining firm PT Aneka Tambang Tbk into gold bars with purity of 99.99 percent gold to meet the government?s regulation, which requires only gold product with such purity level can be exported.
Editing by Reiner Simanjuntak