KWM leads as Australian PE firm exits Indonesia gold mine

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King & Wood Mallesons (KWM) has acted as the global legal counsel for an Australian private equity firm and other investors in the sale of their interests in a gold and silver mine in North Sumatra.

KWM advised EMR Capital and other investors in selling the Martabe mine, which is one of the largest gold mines in the world. Allen & Overy also acted for EMR Capital.

Linklaters counselled Danusa Tambang Nusantara, which agreed to buy the mine for an enterprise value of US$1.21bn.

A consortium formed by EMR Capital, Farallon Capital, and other investors acquired a 95% stake of the Martabe Mine in 2015 in one of the world’s largest leveraged buy-outs of a gold-producing asset. Clayton Utz advised on that $775m deal.

The KWM team that acted on the sale was led by partners Mark McNamara and Paul Schroder. They were supported by senior associate Mark Vanderneut and solicitors Eunice Leung and Jing Wang.  KWM tapped its Beijing, Singapore, Hong Kong, and London offices for the process.

McNamara said that during the ownership of EMR Capital and the previous investors, gold and silver production at the Martabe mine substantially increased, reserves were doubled, and significant operational efficiencies were achieved.

“This sale required us to work across a range of jurisdictions and really highlighted KWM’s capability in Asia to lead significant and complex cross-border transactions,” Schroder said.