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7 June 2021 (closed)
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The owners of Tujuh Bukit, a gold and copper project located near Banyuwangi (East Java), are planning to conduct an initial public offering on the Indonesia Stock Exchange in the third quarter of 2014. The project zone is estimated to contain at least 1.6 million ounces of gold and 60 million ounces of silver. If construction of the mine can be realized this year, then gold production can start in 2016. Construction of the copper mine is expected to start in 2019. Through the IPO, USD $75 million is targeted to be raised (used for concession development).
The area of Tujuh Bukit, once known as one of the world's best undeveloped gold and copper sites, was first developed by Australian Intrepid Mines Ltd in cooperation with its Indonesian partner Indo Multi Niaga (IMN), which holds the license to mine the area. However, Intrepid was then locked out of the USD $5 billion project after IMN transferred the ownership of Intrepid's 80 percent shareholding to Bumi Sukses Indo (BSI). This case went to court and eventually a settlement was reached in which Intrepid Mines received a 22 percent stake in a new holding company (Merdeka Serasi Jaya), which was then sold to Singapore-based Kendall Court for USD $80 million.
For Intrepid this was a relatively good outcome, but the case does hurt assessment of Indonesia's investment climate as it highlights persistent legal uncertainty in Southeast Asia's largest economy.