Gold and copper producer, Oxiana (OXR) said on Wednesday its board has approved the development of the Martabe gold and silver project in the Indonesian Province of North Sumatra.
It is still awaiting an approval from Indonesian Government, expected in April 2008.
In the meantime it said this approval allows the project to proceed on a fast-track time line providing for commissioning of the project in 2009.
"Martabe not only adds to Oxiana's production pipeline but established a significant present for Oxiana in Indonesia, one of the world's most mineralised and highly prospective domains," the company said.
The capital cost of the project is approximately $US310 and average total cash costs of production are estimated at US$270/oz.
Oxiana is based in Melbourne with projects in South-East Asia and Australia. Its 2006 full year profit was $553 million with a market capitalisation of about $6.1 billion.
Oxiana fell 1 cent to $3.63 at 12.36pm AEST.
