EMR consortium to buy Indonesia gold mine for $775m

G-Resources said in a regulatory filing that funds managed by EMR would take a 61.4% stake in the Martabe Mine and certain subsidiaries. Farallon Capital Management will acquire 20.6%, with two Indonesian investors - Martua Sitorus, who is executive deputy chairman of Wilmar International, and two members of the Hartono family, which owns Djarum Group - taking the remainder.

Owen Hegarty, chairman and 30% shareholder in EMR, is also executive director and vice chairman of G-Resources. Hegarty is also familiar with the Martabe Mine. He tried to buy the asset from OZ Minerals, the company formed through a merger between Oxiana Resources, which he founded, and Zinifex. It was instead sold to G-Resources' predecessor in 2009, which then hired Hegarty, Reuters reported.

The mine is located in North Sumatra and went into production in 2012. As of December 2014, it had a resource base of 7.4 million ounces of gold and 70 million ounces of silver. The mine produced more than 250,000 ounces of gold and over 2.2 million ounces of silver last year. Based on current reserves, it is expected to produce in excess of 250,000 ounces of gold and 2-3 million ounces of silver per annum for a minimum of 10 years.

Earlier this year, EMR announced a final close of $450 million on its specialist mining fund, with a remit to invest in copper, gold, coking coal and fertilizer potash mining operations.

Previous investments include serving as a cornerstone investor for a share placement by Spanish potash developer Highfield Resources, and the acquisition of Australia's Mt. Gordon copper mine from Aditya Birla Minerals.

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• Topics
• Buyouts
• Industrials
• Southeast Asia
• Australasia
• Commodities
• buyout
• Southeast Asia
• Indonesia
• EMR Capital
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