Building AsiaÆs Latest Hard Rock Mine

G-ResourcesÆ Martabe Mine in North Sumatra, Indonesia, is a US$700 M world-class and world-scale operation in a country which, with a few notable smaller scale exceptions, has had no significant hard rock mining development in more than ten years.The mine was commissioned in the middle part of 2012 and poured first gold on 24 July. At full production Martabe will produce 250 000 oz/a of gold and 2 - 3 Moz/a of silver at cash costs in the lowest quartile. The mine location is on the west coast of North Sumatra, which experiences annual rainfall of 4 m with no notable dry season, adjacent to seismically active fault zones, and relatively close to a rural community of 31 000 people with no significant industrial experience.The management team has successfully forged strong links with the various government departments and levels in Jakarta, North Sumatra Province and the local Regencies; developed long-term relationships with the various community groups within the local district of Batangtoru to build a sustainable social licence; has dealt with the physical and environmental challenges presented by the project location, and has successfully raised more than US$900 M over a period of three years for the original acquisition then the development of the project.Whilst in its infancy of operation, the mine is set up to deliver a long-term sustainable future for the company, the shareholders, and the people of Batangtoru and all stakeholders generally. The quality of the project execution and commitment by the company will ensure that maximum value can be delivered from Martabe, not just for the current mine life but from the significant exploration potential that exists on the large tenement area that the company has access to for 30 plus years.This paper will deal with the physical challenges associated with the design, the Indonesian government regulatory requirements for mine development, the social aspects of building a world-class project in a developing area, the in-country commitment necessary for any project development anywhere in the world and the successful funding arrangements for the mine development.CITATION:Albert, P G, Siahaan, L H D and Duffy, T J V, 2012. Building AsiaÆs latest hard rock mine, in Proceedings International Mine Management 2012, pp 189-204 (The Australasian Institute of Mining and Metallurgy: Melbourne).