Case Study: PT Agincourt Resources
Undertake an environmental impact assessment to ensure PT Agincourt Resources attained local AMDAL approval and could commence construction on a mine in Indonesia.
PT Agincourt Resources acquired the Martabe gold and silver mine in Northern Sumatra, Indonesia during 2006. Martabe is a significant gold resource with the potential to produce 200,000oz of gold and 2 million ounces of silver each year. However, before construction at the deposit could begin PT Agincourt Resources needed to meet strict requirements as laid down by the Indonesian Ministry for Environment’s Environmental Impact Assessment (EIA) framework, otherwise know as AMDAL.
ERM was contracted by PT Agincourt Resources in late 2006 to undertake an EIA which would ensure the mine gained AMDAL approval and construction could commence in 2008.
Notably during the assessment process PT Agincourt Resources was acquired by Australian-based Oxiana Limited. This created a second dimension to the EIA process as both AMDAL and a new set of corporate environmental, community relationship and health and safety requirements needed to be met.
ERM consultants went to work collecting information required to meet the government and company’s requirements; from air quality to socio-economic data. Simultaneously ERM also had to follow strict processes set out by AMDAL relating to public engagement.
ERM submitted Terms of Reference for the project which were reviewed and approved by the relevant authorities. This was followed by submission of the AMDAL itself and accompanying environmental monitoring and management plans.
Benefits and Value
AMDAL approval was granted in early 2008 and the project is on schedule to begin construction later this year. Martabe, which is a US$310 million project with an initial nine year mine life, is wholly-owned by PT Agincourt Resources. Agincourt’s parent company, Oxiana Limited, is encouraged by both the prospectivity and operating environment in Indonesia and hopes to undertake further projects in the country.