Quantum seeks to reclaim Intrepid Indonesian mine asset

According to Bloomberg, the Hong Kong-based firm says it is best placed to resolve a dispute over the ownership of the A$5 billion ($4.9 billion) Tujuh Bukit deposit, a copper and gold project in Java. The firm is negotiating to take back as much as 80% on behalf of former owner Intrepid Mines.

Intrepid entered into an agreement with Indonesia's Indo Multi Niaga in 2008 for an 80% stake in the mine, which may contain 25 million ounces of gold and 15 billion pounds of copper.

Last year, the owners of Indo Multi - Andreas Reza Nazaruddin and Maya Miranda Ambarsari - sold the company to a new owner who transferred the mining license to a separate entity, dishonoring the agreement with Intrepid, which has spent $100 million developing the project.

Quantam - which has a 5.4% stake in Intrepid - has already said it is seeking to remove five of the mining company's seven directors so it can bring in a new leadership which it says could recover a stake in the Indonesian asset in six to nine months. In addition, the private equity investor has been holding monthly talks with the asset's new title holders to resolve the issue.

"Unfortunately, the current board has pursued a strategy that has not gone over well with the new title holders," Greg Mazur, a founding partner at Quantum said. "Instead of going in as a bull in a china shop, we have gone in and tried to sit down with the new local title holders and that has gone over well, and we've gotten confidence that there is a negotiated deal to be done."

 

 

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• Topics
• Australasia
• Southeast Asia
• Commodities
• Indonesia
• Australia