Sihayo obtains construction permit for gold project

By Romel S. Gurky

ASX-listed Sihayo Gold Limited announced Thursday it has received the construction permit from the Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources for its 75 percent owned Sihayo Pungkut Gold Project in North Sumatra Province.

Sihayo said in a statement that this major permit allows the company to progress the project subject to necessary project funding.

?Further, in recent discussions with Perusahaan Listrik Negara (PLN), the Indonesian Government owned power corporation, we have been advised that power shortages are no longer an issue and there will be grid power available to the Pungkut Project,? it added.

The company said it is following up these favorable discussions on a PLN power supply to the project in order to seek a framework agreement. ?As noted in previous announcements, a lower cost power supply project represents a significant value driver for the project,? the statement ended.

Editing by Reiner Simanjuntak