Consolidated Mineral Holdings made its first investment in northern Indonesia in July 2015 through the acquisition of a property located in a volcanic hosted gold mineralization area originally discovered and surveyed by Newmont Mining, one of the world’s largest gold miners. Based on the heap leaching (soft ore) extraction method, the existing mining infrastructure has been extensively redeveloped and upgraded with an expanded 3500 tonne capacity leach pad, new power generation equipment, plumbing, tailing and gold processing facilities, constructed off site for enhanced security.
The Company has also acquired an existing production and processing facility based on a 50HA reserve area near the regional capital of Manado in the Philippines. This facility currently produces around 10kg (approx 350oz) of 99% pure gold per month.
In view of the low operating costs in local currency, average production cost for the company's gold output is approximately $500 per oz.
Consolidated Mineral Holdings recently entered into a heads of agreement with a major Philippine family group with significant interests in the building products sector, to jointly develop cement production for distribution into Philippines and Northern Sulawesi in Indonesia. The interests include a $75 million, 1 million tpa capacity cement production plant in Cebu, Philippines and aggregates and limestone reserves on the Philippines main island of Luzon. The construction industry in both Philippines and Indonesia is dynamic and undergoing a period of sustained growth and this initiative will ensure the Company is well placed to capitalise on this trend.