Agincourt Sees Martabe's Contribution to State Revenue Double in 2015 as Production Meets Target
Jakarta. Agincourt Resources, operator of the Martabe gold mine in North Sumatera, paid Rp 732 billion ($55 million) in various taxes and duties on its operation last year, the company said in a statement over the weekend.
On top of that, the company also paid $2.35 million in royalties to the government for its gold and silver sale last year. All in all, Agincourt's total contribution to the government in royalties, taxes, fees and duties in 2015 more than doubled the $28 million it paid in 2014.
According to the 2004 law on regional and fiscal balance, the South Tapanuli district is entitled to 32 percent of the royalties that Agincourt paid. The neighboring districts in the province, North Sumatera, will share another 32 percent equally. The provincial and the central governments will get 16 percent and 20 percent respectively.
Agincourt Resources booked a total revenue of $391 million having sold 302,448.38 ounces of gold and 2.56 million ounces of silver last year, in line with its production target.
The company is among the few miners in Indonesia that saw its contribution to the government increase last year, amid low global demand that undermined exports in commodity-producing countries.
"Despite unstable gold price in the international market, the company continues to strive to improve efficiency so the company's contribution from mining activities to the state's revenue continues to increase from year to year," said Tim Duffy, the president director of Agincourt Resources in the statement.
Agincourt Resources operates in 1,639 square kilometers of mining area under a contract signed in 1997.
The Martabe gold mine is estimated to have a reserve of 7.4 million ounces of gold and 69 million ounces of silver. It began full production in early 2013, with an annual capacity of 250,000 ounces of gold and 2-3 million ounces of silver.
The mine's previous owner, Hong Kong based G-Resources, sold Agincourt Resources for $775 million to a consortium led by EMR Capital, Farallon Capital and two Indonesian investors last year.
Tags: Keywords: