AAIC Bullion Refineries Group Limited (ABRG) through its associate, PT ABRG Indonesia, has announced the signing of an Offtake Agreement with Indonesian mining company, CV Putra Gading Emas.
The agreement is the second major Indonesian mining contract for ABRG, the first being signed in September with a Papuan based mining company, CV Paniai Mining Papua Indonesia. Both agreements aim at feeding the Group’s refinery in Malaysia with a minimum of 1.875 tons of gold rich concentrate each month. Indonesia, known to be the 7th largest gold producer in the world, has been ABRG’s main source for raw gold to feed the Group’s new Nabi Ayoub refinery in Shah, Alam, Malaysia, which is due to open by the end of 2011.
CV Putra Gading Emas will make delivery of a minimum of 1.5 tons of gold rich concentrate each month which will be exported to Malaysia. This will produce in excess of 120kg of 999.5 or 999.9 purity gold each month. This new agreement is valid for 20 years and has an automatic renewal option to extend for a two ten year periods at the end of each term.
Patrick Harvey, Group Managing Director of AAIC Bullion Refineries Group (ABRG), together with PT ABRG Indonesia Managing Director, Hari Prasetiya, signed the agreement with Mr Hamzah Pansuri SE, Managing Director of CV Putra Gading Emas in Jakarta, Indonesia early this week.
Mr Hari Prasetiya said: “We have been working on this deal since March and we are pleased to conclude this important agreement for both PT ABRG Indonesia as well as for CV Putra Gading Emas. This, I am sure will further boost ABRG’s presence in Indonesia.”
Speaking after the agreement signing, Mr Hamzah Pansuri said: ”As billions of dollars are being invested in Sumbawa by Newmont Mining, it is important for the local miners to have a strong international refining partner to work with and so we are very happy to have allied with ABRG”
CV Putra Gading Emas runs a medium-size mining operation in Mataram, West Nusa Tenggara, Indonesia, part of the Lesser Sunda Islands off the southern Indonesia island of Java.
Commenting on recent successes in Asia, ABRG Group Managing Director, Patrick Harvey, said: “These two recent agreements from our Indonesian unit, are particularly important to us as a Group. The revenue generated from them alone will put us through our breakeven point and into operating profit.
The terms of the agreements, each for up to forty years, will place a solid rock of stability under our Group as we expand into markets outside of Asia”.
For further information, please visit www.abrgl.com