West Wits Mining has entered into a business alliance for its Derewo River Gold project in Papua Province of Indonesia with PT Tobacom Del Mandiri (TDM). The alliance will see TDM required to deliver clear and clean certificates for the Derewo IUP and forestry permits in addition to managing site access and security.
West Wits believes this is a significant step forward in recommencing the alluvial project and beginning exploration.
TDM is part of the PT Toba Sejahtra group of companies which has interests in energy and plantation resources. The group was founded in 2004 and has four major business areas – coal, oil and gas, power plants and agriculture. One of its subsidiaries, PT Toba Bara Sejahtra focuses on coal production and is listed on the Indonesian Stock Exchange.
West Wits director responsible for managing Indonesia, Vincent Savage, said, “Whilst Derewo has been an incredibly challenging project for the company, we have remained focused on recommencing the stalled alluvial mining operations and initiating exploration. The project’s size and opportunity has not reduced.
“We are delighted to have formed this new alliance with TDM, a group with significant experience in the resources industry in Indonesia. We are looking forward to forming a strong working relationship with TDM and developing Derewo – a project that deserves to be thoroughly explored.”
Under the alliance agreement, TDM will receive a 30% equity interest in PT Madinah Quarataa’in (PTMQ), the West Wits subsidiary which holds the licences for Derewo. It is envisaged that obtaining the clean and clear certificates, and forestry permits as well as securing safe access to the site may take up to six months. TDM will also have the right to appoint one director to the board of PTMQ as well as one commissioner.
Once the certificates have been received, West Wits will refurbish the damaged heavy equipment and re-establish its initial alluvial circuit.