Martabe gold mine ready to start production

Medan, N Sumatra, March 18 (ANTARA) - PT Agincourt Resources Indonesia plans to start production at the Martabe gold and silver mine in Batang Toru in the district of South Tapanuli, North Sumatra soon, company spokesman said.

"Initial production is scheduled to start as of July 2012," Environment Superintendant Septamto L. Inkiriwang of the company which is a subsidiary of G-Resources Group Ltd. said at North Sumatra Fair here on Sunday.

Since 2010 and until now the Asia-Pacific mining company based and registered in Hong Kong, G-Resources Group Ltd, is still finishing the construction, operation and exploration work at the mine. The design and technical work has now 90 percent finished.

If the whole stages of the construction, operation and exploration work is done as planned initial production of the Martabe gold mine is expected to total 2,500 tons of gold and two to 3,000 ounces of silver a year.

The Martabe gold mine is located in the mineralization zone of 30 square kilometers in the sixth generation working contract measuring 1,639 square kilometers.

"The Martabe gold and silver mine is very prospective as it has the potential to produce for 50 years," Septamto said.

He said the production cost in the Martabe gold mine would be the cheapest in the world as its location is strategic and close to the main infrastructure facilities.

The location is not far away from the Trans-Sumatra highway and only around 40 kilometers from Sibolga city which has a port and a 230 megawatt capacity coal-powered electricity plant.

The physical construction of the mining project involves around 4,000 workers and 700 of them come from several villages in Batang Toru.

He admitted support from the local people was significant for the long-term success of the project.

"We have been committed to cooperating with the local people and developing programs that would benefit all stakeholders and contribute to long-term development," he said.

In view of that he said good cooperation and sustainable development had become the philosophical foundation long before the mine starts production. (*)

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