Australian PE firm EMR Capital exits Martabe mine in $1.21b deal

Australian resources specialist private equity firm EMR Capital on Thursday announced the sale of its stake, along with the interests of Farallon Capital and other shareholders, in Indonesia’s Martabe gold and silver mine to PT Danusa Tambang Nusantara in a deal valued at $1.21 billion.

PT Danusa Tambang Nusantara is jointly owned by PT United Tractors Tbk and PT Pamapersada Nusantara.

The transaction is expected to close before the end of 2018 or any date to be agreed by the parties.

Martabe is one of Asia’s largest gold mines with reserves of 4.7 million ounces of gold and 36 million ounces of silver, and resources of 8.8 million ounces of gold and 72 million ounces of silver as at 31 December 2017.

Last year, Martabe produced 355 thousand ounces of gold and 2,808 thousand ounces of silver at an All In Sustaining Cost of $406 per ounce of gold.

“Indonesia is an important market for EMR and we are currently assessing a number of other investment opportunities in that country. We are committed to our investment strategy and will continue to grow investor value across our expanding project portfolio by utilizing our industry experience, expertise and networks,” said Jason Chang, Chief Executive Officer of EMR.

EMR currently manages ten investments worldwide, including Martabe, across its four key commodity areas of gold, copper, hard coking coal and potash, with further opportunities in the pipeline.

Recently, the PE firm announced its acquisition of Kestrel coking coal mine in Australia’s Bowen Basin from mining group Rio Tinto.

In a statement, EMR Capital said it has completed its acquisition of Rio Tinto’s 80 per cent interest in the coal mine in the Bowen Basin, Australia’s major coal producing region. Financial details of the acquisition were not disclosed but an earlier report said it was worth $2.25 billion.

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