China’s Pengxin International Mining Co Ltd (600490.SS) is in advanced talks to buy Indonesian gold and silver mine Martabe from a consortium led by EMR Capital, for about $1.5 billion, the Wall Street Journal reported on Friday, citing sources.
Pengxin’s deal for Martabe, a giant gold mine on the Indonesian island of Sumatra, hasn’t been finalised, the Journal reported.
Australia-based EMR Capital had spearheaded a consortium that bought 95 percent of the mine from Hong Kong’s G-Resources (1051.HK) in 2016 for $775 million.
Many companies have shown interest in buying Martabe, which has resources of 7.5 million ounces of gold and 67 million ounces of silver.
Pengxin International Mining and Martabe’s majority owner EMR Capital, declined to comment on the matter.
The other stakeholders in the mine are U.S. investment group Farallon Capital Management, with a 20.6 percent stake, and Indonesian billionaires Martua Sitorus with 11 percent and the Hartono family with 7 percent.