Golden Luck

Gold prices surged 11.25% over the last month to $1,792 per troy ounce. This precious metal prices rose since it become the sexiest commodity after the dollar weakened, and financial sector from Europe to the U.S. is in troubled. Domestically, gold has always in high demand just before Ied Mubarak. Some people buy gold to brighten up their look, and sell it after the celebration is over.

In the time when gold are truly precious, those who have enter the gold mining business and start collecting profit from it sales are among the lucky one. PT Freeport Indonesia an affiliated of Freeport-McMoRan Copper & Gold Inc dig up Grasberg in Papua, the single biggest gold and copper mining in the world. The mine has 58 million ounce of gold as proven and probable reserve, where 43.9 million ounce is claimed as part of Freeport. It starts the production in 1967, the first mining company in the country.

While the state-owned enterprise PT Aneka Tambang Tbk operates smaller mining, produce gold and sell it through its subsidiary PT Logam Mulia. From January to June, it sold 3,661 kg of gold, up 6% from the same period last year. It’s not taking into account sales from July to August, when gold sales increased further. In the first half of the year the company booked 32% increase in profit to Rp 997 billion after gold and ferronickel sales rose. Gold contributes 34% of its Rp4.9 trillion revenue.

Aburizal Bakrie–the number 10 Indonesian richest with $2.1 billion of wealth according to Forbes Indonesia—set eyes on the sparkle and plunge into gold mining business in 2009. His family operates PT Bumi Resources Mineral Tbk, a unit of the biggest coal producer in the country PT Bumi Resources Tbk. Bumi Resources Mineral operate gold mining subsidiaries PT Gorontalo Minerals, PT Citra Palu Minerals, and also owned stakes in PT Newmont Nusa Tenggara.

And last but not least, the most recent gold mining owner is Jimmy Budiarto. He owned PT Bara Kutai Energi or familiar with J Resources. Bara Kutai acquired the entire share capital of PT Kutai Surya Mining, a gold mining company, from Emily Jessica Pattiwael and Johnny Tjowasi in June after sold his stake in PT Bukit Makmur Mandiri Utama (Buma), Indonesia’s second largest mining contractor, in November 2009.

According to some executives, J Resources produce 4,000 troy ounce of gold per month, that’s equal to 124.4 kg, or 1,493 kg per annum. Some 3,000 troy ounce of it produce in Indonesia. The company produces gold from two operated mining in Penjom, Malaysia and Sulawesi. “There is another four mining, but not operated yet,” the executives said in Tuesday.

The persons declined to give any financial number since the company is not publicly listed, but gives hints that the company is planning to do an IPO in long-term. Now, the management is in the process improving the company’s structures.

In December 24, 2010, Avocet Mining PLC announces that it has signed a binding agreement for the conditional sale of its South East Asian assets to J&Partners, L.P., a private Cayman Islands company, for a cash consideration of US$200 million. The South East Asian assets, details of which are provided below, include: the Penjom mine in Malaysia; the North Lanut mine and Bakan project in North Sulawesi, Indonesia; and a number of exploration properties in Indonesia. Avocet is West Africa gold producer.

J&Partners, L.P. is a mining fund established by Jimmy. Beside him, the principals in J&Partners is Chris Hui, former Head of Investment Banking for Barclays Capital in China and Hong Kong.


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