Credit: Agincourt Resources.

JAKARTA (TheInsiderStories)–China’s Pengxin International Mining Co. Ltd., is considering to buy Indonesia gold and silver mine Martabe from a consortium led by Australian private equity manager EMR Capital, one official told TheInsiderStories on Sunday (03/06).

The planned is still in the assessment process, she said. Currently, Martabe mine has resources of 7.5 million ounces of gold and 67 million ounces of silver.

Recently, EMR Capital joint with publicly listed coal miner PT Adaro Energy Tbk (IDX: ADRO) acquired 80 percent Rio Tinto‘s coal asset Kestrel in Australia for US$2.25 billion.

The Kestrel mine located in the Bowen Basin, the world premier metallurgical coal region, produced 4.25 Metric ton (Mt) of hard cooking coal and had marketable reserves of 146 Mt and resources of 241 Mt in 2017.

“They just come and see the mine, just like other parties who are interested,” said Hardono, by adding besides Pengxin there are other companies who are interested in the Martabe gold mine such as Shandong Gold Group, a state owned entity Chinese gold miner affiliated with the provincial government of Shandong.

When being asked about whether the Pengxin offered $1.5 billion for the acquisition, she deny to comment cause as long as she know it is still in the early talks.

Martabe mine was acquired by a consortium led by  EMR Capital, a specialist mining private equity fund bought 95 percent of the mine from Hong Kong’s G Resource in 2016 for $775 million.

At this mine, EMR Capital has 61.4 percent of shares. The consortium also includes Farallon Capital, a global financial investor (20.6 percent), North Sumatra businessman Martua Sitorus (11 per cent) and Robert Hartono & Michael Bambang Hartono (7 percent).

In 2017, PT Agincourt recorded $484,43 million in revenue. It is a 13 percents increased from 2016 revenue worth $ 426,43 million. Profit after tax was $151.3 million, an increase of 25.4 percent over the previous record of $120.7 million achieved in 2016.

The net profit margin of 31.2 percent in 2017 was above 2016’s performance at 28.3 percent, reflecting higher sales volume and lower costs. In 2018, Agincourt is focusing to increase the production capacity and continue to explore new reserves around the current pits, said Hardono. The company also starts it’s mining activities in the third pit, Ramba Joring.

“In 2018 we are focusing on increasing the production and productivity, resource conservation and find new reserves and also starts pre-feasibility study for mineralization of sulfide,” she added.

Martabe gold mine is located in the province of North Sumatra with a total area of 1.639-kilometer square. The contract of the work for the mine was signed in April 1997. It started to produce on July 24, 2012.