Jakarta, December 20, 2011 - In line with the philosophy and the efforts of PT Agis Tbk. ("Agis") for increasing value for its shareholders, Agis will continue to seek opportunities that prospective good. One of the efforts made by Agis is diversified into the field of mining natural resources. As one concrete step does, Agis recently signed an agreement to do a Joint Venture with companies from China, Fujian Xinjifu Enterprise Co., Ltd. ("Xinjifu"). In this Joint Venture, Agis and Xinjifu will jointly invest in assets and mining operations in Indonesia. Signing of an agreement for the joint venture itself was executed on December 17, 2011 in Fuzhou, Fujian, China by the President Director of PT Agis Tbk., Steven Kesuma with General Manager of Fujian Xinjifu Enterprise Co., Ltd., Mr. Liu Qunxian.
Fujian Xinjifu Enterprise Co., Ltd. is an experienced company on some types of mining, factory production and trade of basic metals. Xinjifu was founded in 1994. In the mining business, Xinjifu has several investments in assets and mining operations in Malaysia and some other Asian countries. Currently Xinjifu are seeking to increase its investment in Southeast Asia, especially in Indonesia.
With a capital base of U.S. $ 50 million, later Agis will master 51% ownership in the joint venture company. While Xinjifu will control the remaining 49% ownership. The joint venture is also a follow-up of the previous agreement had been made by Agis with several companies owners of mining concessions.
The agreement, among others, is the exclusivity agreement between Agis with the company owner of the gold mining concession in West Sumatra. In the agreement, Agis has the option to acquire a majority stake of the company that owns gold mining concessions (over 60%), if the results of preliminary surveys and laboratory tests show promising potential for gold deposits and valuably economical to operate. One of the mine is showing the potential of the deposit is very promising, is currently undertaking a bulk sampling Agis on its area. As for other mining concessions will continue to do further exploration.
Agis also were discussing a deal to acquire the support of several state-owned enterprises in China in its diversification efforts through a joint venture with Xinjifu on this mining business. Two state-owned enterprises from China who was discussing with Agis, among others: Guangdong Machinery Imp. & Exp. Co. Ltd. (GMG) as a support in terms of exploitation / production, then Shandong Zhengyuan Geological Exploration Institute (ZYDK) as a support in terms of exploration. Experience and capabilities of both state-owned enterprises from China is already recognized as both have a lot to handle projects both within China's own country or abroad.
As a follow up to the signing of the joint venture agreement with Xinjifu as well as discussions with two Chinese state enterprises above, on December 17, 2011, Agis has also signed a tripartite agreement for the Import / Export & International Cooperation Agreement with GMG Engineering & Equipment Co., Ltd. and Sterling Goldhill Sdn. Bhd. to support the exploration and exploitation of the gold mining project Agis. GMG International Engineering & Equipment Co., Ltd. is a subsidiary of Guangdong Machinery Imp. & Exp. Co. Ltd. (GMG)
With the resources and support that is owned, joint venture companies will soon follow up previous agreements exclusivity agreement with the owner of gold mines in West Sumatra to acquire a majority stake in gold mining. While continuing deeper exploration on other gold mining concessions in Sumatra. Results of this joint venture company will also soon begin production on a gold mine operations to be acquired it.
As previously mentioned, Agis tried to make efforts to diversify into the mining business are realized by this joint venture, and it will provide maximum results in value added to Agis, especially the value for the shareholders of PT Agis Tbk.
PT Agis Tbk. at a glance
Agis was founded more than 30 years ago as the exclusive manufacturer and distributor of Sony products in Indonesia. Today, Agis is a fully integrated consumer electronics company with over 500 employees. It not only continues to represent Sony in Indonesia but other brands as well. Its consumer electronics distribution network spans more than 1,000 independent retail shops all over Indonesia. It also own one of the biggest after-sale service network that spans more than 25 service centers throughout the archipelago. Currently Agis is taking chance to diversify into natural resources business.
Xinjifu Fujian Enterprise at a glance
Founded in 1994, Xinjifu is a private company with its main business is trading of metal-based natural resources, mineral resources and iron and steel products. Xinjifu also has invested in several subsidiaries engaged in manufacturing, mining and property. Fujian Enterprise Co. Xinjifu., Ltd. is part of Xinjifu Group. Xinjifu Group's annual turnover has reached more than U.S. $ 1 billion to the management of capital and assets worth more than U.S. $ 500 million.
GMG at a glance
Guangdong Machinery Imp. & Exp. Co., Ltd.. (GMG) is a state-owned enterprises in China which was founded in 1950 with a specialization in foreign trade and economic cooperation. The core business of GMG include: International tendering Service, Shipbuilding, Engineering and Automobile International Trade and Garden Tools. GMG has cooperated with over 130 countries. In Indonesia alone, GMG has cooperated with PT PLN (Persero) in Steam Power Plant project in Gorontalo through its subsidiary, GMG International Engineering & Equipment Co., Ltd.
Shandong Zhengyuan Geological Exploration Institute (ZYDK) was established in 1953. ZYDK is an institution under the supervision of China Metallurgical Geology Bureau (CMBG). ZYDK engaged in mineral exploration and development related research. ZYDK focused on geological exploration, non-ferrous metallurgy and other materials. Currently ZYDK is trying to run a strategy of "go global" as well as expand its prospects in the field of international geology.