Gosowong is owned and operated by PT Nusa Halmahera Minerals (PTNHM), an Indonesian company 75 per cent owned by Newcrest*. It is located on Halmahera Island, in the North Maluku Province of the Republic of Indonesia, approximately 2,450 kilometres north east of the national capital, Jakarta. The Gosowong mining permit, called a Contract of Work (CoW), continues until at least 2029.
Gosowong produces gold and silver doré. The processing plant at Gosowong, which has a capacity of up to 800,000 tonnes per year, comprises a primary jaw crusher followed by a SAG and ball mill circuit and a recently completed Vertimill circuit. The ore then undergoes a conventional cyanide leaching process. Gold and silver is recovered from the cyanide solution using the Merrill-Crowe zinc precipitation process, and is smelted to produce gold doré. Gold and silver doré produced at Gosowong is refined in Jakarta.
In the financial year ending 30 June 2014, Gosowong produced 344,747 ounces of gold and 489,724 ounces of silver. Since mine operations commenced in 1999, over four million ounces of gold and three million ounces of silver have been produced.
*In December 2012, Newcrest completed the sale of a 7.5% interest in PTNHM to PT Aneka Tambang (Antam), an ASX and Jakarta Stock Exchange listed company, for market value, reducing Newcrest’s interest in PTNHM to 75% (down from 82.5%) and increasing Antam’s interest to 25% (up from 17.5%).
The Gosowong exploration program is focussed on testing a portfolio of priority exploration targets within the vicinity of present operations and advancing a number of targets within the regional Contract of Work.
Gosowong creates economic value for Indonesia and local communities in a number of ways, including direct revenues from PTNHM’s operations, investment in public infrastructure and services, support of local suppliers and a range of indirect economic benefits. It is a major contributor to the local economy with a workforce of around 2,200. More than 98 per cent of Gosowong’s total workforce, and 75 per cent of managers, are Indonesian.
PTNHM invests extensively in community initiatives through its Corporate Social Responsibility program, committing one per cent of annual revenue to the program to share the benefits of mining, support community needs and strengthen socio-economic development in the region.
PTNHM’s commitment to the local economy is further demonstrated by implementing a policy of preferring locally based suppliers, where possible.