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Geology
Resources
Reserves
Regional Exploration
Competitive Strengths
   

 

 

The Directors have identified several key factors that have and will continue to enable the Group to compete effectively. The Directors are of the view that the Group’s competitive strengths are as follows:

Location and access of the Concession Blocks

The Concession Blocks are located within the followed Izin Usaha Pertambangan (“IUP”), covering 30.785km2, some 160km south of Jakarta, in Sukabumi Regency of West Java Province. It is reached via the regular road network along sealed roads in variable condition. The topography is rolling hills, and vegetation has mostly been cleared for seasonal cropping by local villagers. Several villages are present throughout the project area, as well as plantations, both private- and state- owned. Villagers engage in farming, work in plantations, or engage in artisanal mining activities. Average annual rainfall is about 3,500mm/year.

Potential Resources

By Prof. Zhang Zeng Wei PhD

Extensive prior exploration on the Concession Blocks

The Concession Blocks have a long history of geological explorations since the 1980s. The Group is able to leverage on the exploration activities conducted by prior concession holders of the Concession Blocks. Various Australian companies had carried out detailed geological exploration work on the Concession Blocks from 1980s to 2000.

Experienced management and professional team

The Group has a team of key management and technical staff with extensive knowledge and experience in gold mining. The Director, Wijaya Lawrence, has been building up his knowledge and contacts in the gold mining industry in Indonesia through the management of the Group’s exploration and exploitation activities, business dealings with industry players as well as interactions with the relevant government authorities.

The Group’s expertise is augmented by a team of professionals in the field of geological sciences, exploration of mineral resources and mineralogy research and mining production. The Directors believe that this team of professionals provides the Group a wealth of expertise for its mining operations.

Established Infrastructure

The Group has constructed a range of infrastructure at the Concession Blocks. This includes perimeter fencing (with a planned closed-circuit television monitoring system), storage bunks, ammunition bunk, and stable and sufficient electricity and water supply. Additionally, an in-house laboratory is also currently being constructed. The infrastructure allows the Group to carry out its mining activities at a safe and optimum level.

Clean and Clear Status

On 17 October 2012, the company has been awarded “Clean and Clear” certificate by the Directorate General of Mineral and Coal and Geothermal Energy. The requirements to obtain such “Clean and Clear” status are fairly stringent. Such requirements include evidence of full environment documentation in accordance with the relevant Indonesian environmental laws, evidence of mining plan, reclamation plan and post-mining plan as well as payment evidence of mandatory guarantee to the Indonesian government according to the prevailing Indonesian regulations.

Good relationship with regulatory authorities and local communities

The Directors have developed good working relationships with the regulatory authorities and the local community over the years. Since the commencement of its operations, the Group has been working closely with the regulatory authorities by providing regular reports to update the monthly activities of its mining operations.

The Group actively engages, supports and provides employment for the local communities. Through its CSR program, the Group has improved the infrastructure in the vicinity of the Concession Blocks. The Group contributes to the local community by constructing public recreational facilities such as a multi-purpose outdoor field. The Group holds regular meetings with representatives of the local communities to discuss the progress and implementation of its community assistance programs as well as to address any issues, concerns or complaints that arise. The Group also supports various local businesses by, where suitable, engaging them as suppliers.

The Directors believe that such cordial working relationships with the regulatory authorities and the local communities achieved through carrying out its mining activities responsibly would minimise incidences of disruptions and optimise the efficiency of its mining operations.