UT: Sumbawa gold mine to start production in 2019

By Thomas Sembiring

IDX-listed heavy equipment and mining company PT United Tractors Tbk (UT) said that its gold mine project in Sumbawa, West Nusa Tenggara Province, is targeted to start production in early 2019.

UT Finance Director Iwan Hadiantoro said on Thursday that the project is currently at the development phase, and the company hopes to build processing plant next year.

UT through subsidiary PT Pamapersada Nusantara acquired in February of 2015 75.5 percent stake in PT Sumbawa Jutaraya, which owns the gold mine, for US$2.57 million, as part of diversification strategy.

The company plans to start gold production in one block, of the total eight blocks in the concession area, as it has already obtained the required permit, while it is still in the process of obtaining permits for the seven other blocks.

The particular block is estimated to have gold reserves of around 400,000 oz, giving a mine life of seven years with peak production expected in the second or third year, Iwan said.

Editing by Reiner Simanjuntak