Wednesday, 19th December 2007 (2017 views)

The Australian mining company Oxiana has confirmed that it is to spend $310 million (£153 million) in the development of a new gold and silver mine in Indonesia.

The Martabe mine is based in the Indonesian region of north Sumatra and the company predicts that over 200,000 ounces of gold will be produced at the site over nine years.

Oxiana has indicated that construction of the process plant will commence next summer subject to receiving Indonesian mining permits.

However, despite needing a licence from the forestry ministry, the company has stated its confidence that the development would be approved.

"We don't anticipate any hold ups and we anticipate getting that approval in April 2008," an Oxiana spokeswoman told Reuters.

The company added that the Martabe site would boost Oxiana's production pipeline and also secure its position in a highly mineralised country.

Oxiana has previously confirmed an interest in expanding its presence in south east Asia.

 

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