Monday, June 20, 2011

Indonesia's Merukh raises $14 billion for South East Asian copper and gold projects

PT Merukh Enterprises, a major Indonesian-owned gold, copper and coal mining company, has secured a minimum funding commitment of $14 billion through a bank syndicate and international financial institutions.

“Two US hedge funds have committed to disburse $7 billion each for the needs of our projects investments,” Merukh Enterprises president director and CEO Rudy Merukh said in statement.

According to Merukh Enterprises government and public relations manager Alexander Yopi the $14 billion will be used for Indonesian projects, particularly copper mining on Lembata Island in East Nusa Tenggara (NTT) province and gold mining in Pohwatu in Gorontalo province.

The company will also complete the take over of Avocet Mining Plc’s 80% shares in gold mining company PT Avocet Bolaang Mongondow, the Penjom gold mine in Pahang, Malaysia, and all Avocet’s assets in South East Asia.

Avocet acquired 80% of PT Avocet Bolaang Mongondow from Newmont Mining Corp in 2002. In 2010 its North Lanut mine produced 47,580 oz of gold and the Penjom gold mine, Malaysia’s largest, produced 51,084 oz of gold.

Through PT Pukuafu Indah, Merukh Enterprises currently owns 17.8% of PT Newmont Nusa Tenggara after selling 2.2 percent to PT Indonesia Masbaga Investama in 2010, The Jakarta Post noted.

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