The Company Owned By Conglomerate Agus Lasmono Sudwikatmono Disburses IDR $ 45.3 million To Acquire Gold Mine In Luwu, South Sulawesi

Illustration. (Photo: Unsplash)

JAKARTA - PT Indika Energy Tbk through a scheme of arrangement mechanism, took over Nusantara Resources Limited which manages the Awak Mas gold mine in Luwu, South Sulawesi.

Indika Energy's President Director, Arsjad Rasjid, said the acquisition was a strategic step for the company owned by conglomerate Agus Lasmono Sudwikatmono to increase exposure in the gold mining sector and strengthen business diversification.

"This transaction is a strategic step for Indika Energy to strengthen business diversification in the non-coal sector, which we have been working on for the last three years", said Arsjad, in his statement, quoted from Antara, Monday, June 28.

Indika Energy will pay AUD 0.35 per share for the 168,041,107 shares not yet owned by the company, bringing the total transaction to AUD 58.8 million or the equivalent of $ 45.3 million (approximately IDR 643 billion) for approximately 72 percent of Nusantara shares.

"We hope this transaction can create long-term value that is profitable for all stakeholders", said Arsjad.

Indika Energy through its subsidiary PT Indika Mineral Investindo (IMI) currently owns about 28 percent of the shares in Nusantara and has direct share ownership of PT Masmindo Dwi Area, which manages the Awak Mas gold mine as much as 25 percent.

Through this transaction, Indika Energy will fully control Masmindo, thereby effectively increasing the company's exposure to the gold mining sector.

"Since we made the initial investment at the end of 2018, reserves and resources from Masmindo have increased by 34 percent and 18 percent, which are now at the level of 1.5 million ounces and 2.35 million ounces. We believe that the prospect of gold in the future is still good", he said.

As part of the strategic move, Indika Energy's subsidiary, PT Petrosea Tbk, is also involved in the Awak Mas project to create business synergies for value creation.

Petrosea acts as a contractor for Front End Engineering and Design (FEED) work which will be followed by negotiations on engineering, procurement, and construction (EPC) work.