Tansri Madjid to triple gold production

Gold miner PT Tansri Madjid Energi, which operates a gold mine in Lebong, Bengkulu Province, is expected to boost gold output this year to 3 kg per month from 1 kg per month last year, Kontan reported on Wednesday.

This was said by Andre Permana, President Director of IDX-listed PT Leo Investments Tbk, which through subsidiary PT Lion Nickel in November of 2015 signed a cooperation agreement with Tansri under which the former provides financing for the latter for production activity in return for exclusive rights in the marketing of the gold output. Lion obtains a fee of 20 percent of Tansri?s revenue.

Andre said that Tansri targeted a monthly gold output of 3 kg last year, but realized production rate was only 1 kg due to bad weather condition.

Andre said that given the small production volume, the gold output will be sold in the domestic retail market.

He said that to help meet the higher production target, Tansri will improve production facilities and the mining technology.

The Lebong mine, which started production early last year, has JORC reserves of 324,000 tons, concentrate of 1.93 gram per ton, and recovery ratio of 65 percent.

Lion Nickel is also engaged in oil and gas services. Andre said that about 70 percent of revenue this year is expected to come from the gold business, while the remaining 30 percent from other business. (*)