Volume 9 Edition 3 2012 - The ASIA Miner

IndonesiaMartabe production scheduled for JulyG-RESOURCES Group has reached a numberof key milestones ahead of first commercialgold production at its Martabe Gold-SilverProject in North Sumatra. The pr oject is ontrack to start production in July this year.The high voltage switch-yard was energizedon March 25 and then power transmittedinto the central process plant switch-room.Both the ore grinding mills were mechanicallyinstalled by the end of February while constructionof the two main water managementG-Resources’ Martabe project is on track for first commercial gold production in July.sedimentation dams was also completed bythe end of February.At the process plant, the concrete placementhas been completed while steel er ectionwas more than 80% complete by the endof March. G-Resources’ chief executive officerPeter Albert says, “Pr ogress continuesto push ahead steadily and aggr essively atMartabe as we get closer to starting productionin a few short months.”A detailed review of the Martabe schedulelate last year determined that pr essure froma number of ar eas, including exceptionallyhigh December rainfall which slowed downtailings storage facility construction, and adelay in the delivery of electrical switchrooms, conveyors and some other fabricatedsteel items from domestic and offshore sources,led to a delayed target date for first gold.“G-Resources is determined to maintain theexcellent safety record established at Martabeand will not expedite anything that riskssafety standard nor compromises the qualityof our mine and plant,” Peter Albert says.Martabe is the company’ s core starterasset. It has a r esource base of 7.86 millionounces of gold and 73.48 million ounces ofsilver. G-Resources plans to begin productionat an annual rate of 250,000 ounces of goldand 2-3 million ounces of silver.Mining at the Purnama pit has advanced tothe stage of operating on two shifts, and bythe end of March more than 100,000 tonnesof ore at a grade of 2.3 grams/tonne gold hadbeen stockpiled. Advance drilling on the or ebody has to date confirmed and in somecases bettered the ore body resource model.Peter Albert says, “Advance drilling on themain Purnama ore body is encouraging, givingincreasing confidence in our r esourcesand reserves as well as in our ability to rapidlycommission and deliver.”Antam to raise gold output 16%STATE-OWNED mining company PT AnekaTambang (Antam) expects to raise productionfrom its gold mining operations by 16% to3100kg this year from 2667kg in 2011. ThePongkor mine in W est Java is expected tocontribute 2000kg, up from 1987kg in 2011,and the Cibaliung mine in Banten 1100kg, upfrom last year’s 680kg.Despite a slight drop in production in 2011due to lower grade gold produced at the twomines, the company boosted sales by 22%to 8009kg. It is targeting combined sales of7000kg of gold this year, which includes thirdparty refining at its Logam Mulia pr eciousmetal refinery in Jakarta.Antam’s gold pr oduction decreased 4%compared to 2010 and as both Pongkor andCibaliung are underground mines, the gradesof the gold ores are beyond the company’scontrol. The gold figures contributed toa 14.5% incr ease in Antam’s net pr ofit in2011 with higher sales of ferronickel and nikkelore also contributing. 2011 was a recordyear for Antam’s ferronickel production andsales. As Antam’s ferronickel smelters operatedat optimal levels in 2011, ferr onickelproduction in 2011 rose 5% over 2010. Demandfor nickel ore also remained robust in2011, resulting in higher nickel or e productionof 13% compared to 2010.Antam’s main gold and silver production issourced from its gold mine at Pongkor, WestJava. Indications of gold deposits at Pongkorwere discovered by Antam’s Geology Unit in1981 and production started in May 1994.Pongkor has three primary veins of gold -Ciguha, Kubang Cicau and Ciurug. A conventionalcut and fill stoping mining methodis used for the first two of these veins. A mechanizedcut and fill method, with hydraulicjumbo drill and load haul dump, was introducedin 2000 for the third vein. The use of mechanizedcut and fill is intended not only toassist in meeting the incr eased productiontargets but also to lower overall pr oductioncosts and to improve efficiency.Antam expects mine life of Pongkor until2019 with current gold reserves and resourcesamount to 1.3 million ounce. The gold ore goesthrough various processes at Pongkor’s facilitywhich include crushing, milling, cyanidation,carbon leaching and stripping, electro winningto melting and casting to produce bullion/dore.The Cibaliung gold mine is operated byAntam subsidiary PT Cibaliung Sumber -daya, which was acquired from Arc ExplorationAustralia in 2009.38 | ASIA Miner | May/June 2012