May 05, 2014
A $4 billion copper and gold project in Indonesia, snatched from an Australian company two years ago, is set to come back to the market this year in a public offering by its new owners, led by two local coal tycoons. The owners of Tujuh Bukit plan an initial public offering in the third quarter of 2014, looking to raise up to $75 million and aiming for a market capitalisation of at least $800 million on listing, a controlling stakeholder said.
Work will initially focus on a zone that according to a 2012 report may hold at least 1.6 million ounces of gold and 60 million ounces of silver, generating cash before attention turns to what has long been recognised as one of the world’s largest undeveloped copper lodes.
“Basically it’s a very profitable project in its own right and allows us to generate cash flows and start to entrench ourselves in the area,” said Gavin Caudle, a partner in Southeast Asia-focused Provident Capital Partners, a major shareholder in the Tujuh Bukit holding company. Courtesy Reuters