Shanghai Pengxin Group Co. Ltd. subsidiary Pengxin International Mining Co. Ltd. is in advanced talks to purchase the Martabe gold-silver mine in Indonesia, people familiar with the matter told The Wall Street Journal.
The previously rumored deal is estimated to fetch about US$1.5 billion for the EMR Capital Group-led consortium, which acquired the Martabe operation from G-Resources Group Ltd. for US$775 million in March 2016, according to the June 1 report.
In a May 22 statement on the Shanghai Stock Exchange, Pengxin International had said it will conduct a major asset restructuring to acquire the mine's holding company but did not disclose any financial specifics.
EMR completed a US$560 million refinancing of the mine in October 2017 to pay down "a lot of the existing loan."
The operator of the Martabe mine, PT Agincourt Resources, is owned 61.4% by EMR, 20.6% by Farallon Capital, 11% by Martua Sitorus, and 7% by Robert Hartono and Michael Bambang Hartono.
