Gold Mining Company in Malaysia

Old News: PGL in new gold extraction venture

Peninsular Gold Ltd (PGL), the latest to join the gold mining industry in Pahang, is investing in a state-of-the-art Carbonin-Leach processing plant in Raub, which is expected to start production next year.

The plant, with an initial production of 25,000 ounces of gold from Bukit Koman, is geared to step up production eventually to 100,000 ounces a year.

Speaking at the official ground breaking ceremony of the new plant by Datuk Adnan Yaakob, the Menteri Besar (Chief Minister) of Pahang, PGL's Chairman and Chief Executive, Datuk Seri Andrew Kam Tai Yeow said, the new plant, with the latest technology would be able to maximise the extraction of gold from soil by up to 85% from the 15 % based on the conventional technology.

PGL, whose wholly-owned subsidiary, Raub Australian Gold Mining Sdn Bhd, has been granted a 20-year rights to mine gold at the 202-hectare site in Bukit Koman, expects to export the entire production of the gold.

The company, which targets to extract a minimum of five million ounces of gold in Malaysia, is expected to invest an additional RM150 million subsequently, for extensive drilling works and possible expansion of the new plant.

"Malaysia has a mining culture and the operating cost at about US$200 (RM702) an ounce for tailings deposits here is very conducive for gold mining. Kam said.

Tailings deposits are residues from conventional methods of gold extraction, which were not able to get the maximum gold yield from the soil. Hence the new plant will be able to process up to 1.1 million tonnes of tailings a year.

PGL, listed on the Alternative Investment Market of the London Stock Exchange, has brought in more than RM50 million from its London listing in 2005, to invest in its gold mining and exploration operations in Malaysia. To-date, it has invested RM25 million for exploration works in Bukit Koman.

With the current gold prices of between US$680 and US$700 (RM2,380 and RM2,457) an ounce, the company expects to generate some RM60 million a year in revenue just from its initial production.

Adapted from NST Business Times, 3 March 2007