Martabe Gold Mine Welcoming The New Shareholder

Batangtoru, 21 November 2018 — PT Agincourt Resources, the operator of the Martabe Gold Mine held a Mamborgo-Borgoi event, a traditional ceremony of South Tapanuli, to welcome the new shareholders of Martabe Gold Mine, Wednesday (21/18). This traditional ceremony is held at the mine, in Batangtoru, South Tapanuli, involving hundreds of employees and representatives of Batangtoru and Muara Batangtoru Subdistricts, heads and traditional leaders of 15 directly affected villages surrounding the mine, and representatives of the Community Communication Forum of Martabe (LKMM).

Upon completion of the change of ownership, the new President Commissioner of PT Agincourt Resources will be Frans Kesuma and the new President Director of PT Agincourt Resources will be Muliady Sutio who both attended the ceremony. In addition, several representatives from EMR Capital consortium also attended, including Owen Hegarty as President Commissioner, Anwar Nasution (Commissioner) and Noke Kiroyan (Commissioner).

The acquisition process of Martabe Gold Mine managed by PT Agincourt Resources is targeted for completion by the end of November 2018. Previously the main shareholder of PT Agincourt Resources, was a consortium led by EMR Capital, a private Australian mining equity fund company with the shareholding composition of 61.4 % owned by EMR, Farallon Capital 20.6%, Martua Sitorus 11% and Robert Budi Hartono & Michael Bambang Hartono 7%. Now the ownership of PT Agincourt Resources is officially replaced by PT Danusa Tambang Nusantara, which is a subsidiary of PT Pamapersada Nusantara (PAMA) and PT United Tractors Tbk, a part of the PT Astra International, Tbk. Meanwhile the share ownership of the Government of South Tapanuli Regency and North Sumatra Province (Pemda) through PT Artha Nugraha Agung of 5% remains unchanged.

Tim Duffy, President Director of PT Agincourt Resources, stated that 2017 was the most successful year for exploration and production at the Martabe Gold Mine. Gold reserves increased to 4.8 million ounces and gold production increased to a new record of 355,000 ounces. “We are optimistic that with the new shareholders the performance of the Martabe Gold Mine will continue to grow and provide further significant contributions to the surrounding communities in particular and generally for the people of Indonesia, “said Tim Duffy.

The Martabe Gold Mine is the largest gold and silver mine on the island of Sumatra that will continue to provide substantial benefits to the Indonesian government through taxes, royalties and dividends. The company has provided more than 2,700 jobs of which more than 70% are from the local community and has intensively run corporate social responsibility programs that aims to improve the lives and welfare of the surrounding community. The mine will operate at least until 2033 and will continue to open up opportunities for development in Batangtoru and Muara Batangtoru Subdistricts, South Tapanuli Regency years later. Many families will experience improved quality of life as a result of the development of the Martabe Gold Mine.

Operational and exploration achievements in 2017 have strengthened the fact that the Martabe Gold Mine is a world-class gold asset. There are two potential asset optimization to make the best use of mineral resources and ore reserves. Expansion of mineral resources and ore reserves through aggressive and high-quality exploration programs. The company’s growth strategy was very successful last year. Increased production and significant cost savings coupled with the extraordinary results of exploration programs that have increased mine life.

Meanwhile for the program in 2018 it will focus on increasing production and productivity, converting additional resources into reserves, and also initiating initial pre-feasibility studies for “sulfide” mineralization. The three programs have the potential to further increase reserves and mine life.

“We are pleased to welcome the presence of new shareholders. The Martabe Gold Mine continues to carry out business activities as usual and remains focused on paying attention to our external stakeholders, social permits and operating in a safe, efficient and low-cost manner,” Tim Duffy said.

Meanwhile Frans Kesuma stated that he was deeply moved by the remarks given by local traditional leaders and local community leaders for his presence as a new shareholder of the Martabe Gold Mine project. “The greeting through this traditional ceremony is very serious, not playful, for us it means in once, which means that you accept us with open arms as new shareholders,” Frans said.

Regarding the new management program in the future, according to Frans, the company’s CSR program remains committed to supporting community activities surrounding the mine. “As new owners of the Martabe Gold Mine project we will be able to develop the community around the mine. In line with our policies, of course we strongly support what has been done by previous management. We are committed to continuing the existing policies and even increasing contributions to communities surrounding the mine. We intend to develop this project to be better and better, for that we ask for the support from all communities and all the stakeholder, “Frans said.

Martabe Overview
The Martabe Gold Mine is managed and operated by PT Agincourt Resources. The mine area covers an area of 30 km² in the sixth generation Contract of Work (KK) with a total area of 1,303 km². The Martabe Gold Mine is located on the western side of the island of Sumatra, Batang Toru District, North Sumatra Province. The Martabe Gold Mine began full production on July 24, 2012 and has a resource base as of December 31, 2017 which is 8.8 Moz gold and 72 Moz silver. The operating capacity of the Martabe Gold Mine is more than 5 million tons of ore per year to produce more than 300,000 ounces of gold and 2-3 million ounces of silver per year. PT Agincourt Resources involved more than 2,700 employees and contractors, about 98% of whom were Indonesian citizens, and more than 70% were from local villages. Upon completion of the change of ownership, PT Agincourt Resources’ main shareholders are PT Danusa Tambang Nusantara (DTN), a subsidiary of PT Pamapersada Nusantara (PAMA) and PT United Tractors Tbk with a total share of 95%. 5% share ownership is owned by the Government of South Tapanuli Regency and North Sumatra Province.

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Photo 1: The management of the new shareholders and the management of PT Agincourt Resources’ previous shareholders participated in the ritual of the Mamborgo-borgoi traditional ceremony in order to welcome new shareholders at the Martabe Gold Mine location in Batangtoru, Tapanuli Selatan, North Sumatra on Wednesday (21 / 11)

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Photo 2: President Director of PT Agincourt Resources, Tim Duffy gave betel leaf to Frans Kesuma, as a representative of PT Agincourt Resources’s new shareholder. The giving of betel leaves is part of a series of processions for the Mamborgo-borgoi traditional ceremony in order to welcome the new shareholders of the Martabe Gold Mine.

For further information:
Katarina Siburian Hardono
Corporate Communications Senior Manager
M +62 811 9005146 E katarina.hardono@agincourtresources.com